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3. Yoo Kim works in an investment bank and has been requested to work on an analysis between interest rates and a mutual fund investment.

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3. Yoo Kim works in an investment bank and has been requested to work on an analysis between interest rates and a mutual fund investment. The data is shown in Figure 6.12. Using Excel or other statistical software obtain the appropriate graphs and statistics and answer the following questions: Average Interest Rate (*) Annual Mutual Fund Investment (Thousands of Dollars) 1,020 1.220 1,920 4.4 4.9 6.9 1,010 6.7 1.990 4.3 2,050 3.4 2,070 3.1 2,030 4.8 1,780 5.2 1,520 8.3 a. Obtain the predicted linear regression model. Interpret the slope coefficient of this regres- sion with respect to the dependent variable. b. Is the relationship between the independent and dependent variables significant? c. Calculate and interpret R. d. Discuss correlation statistics. e. If the model is linear and significant, forecast the mutual fund by assuming that the interest rate will increase by 4%

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