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For each problem, please provide detail solution and written answers in a separate Excel tab. Your optimization model must be stored in different tab to
For each problem, please provide detail solution and written answers in a separate Excel tab. Your optimization model must be stored in different tab to get full credit: 1. An analyst for Fhidelitv Investments wants to develop a regression model to predict the annual rate of return for a stock based on the priceearnings {PE} ratio ofthe stock and a measure of the stocks risk. Download the data from eCollege to answer the following questions: A. Prepare scatter plots for each independent variable versus the dependent variable. What type of model do thae scatter plots suggest might be appropriate for the data? {1 point] B. Let Y 2 Return, K1 : PE Ratio, and I: 2 Risk. Obtain the regression resulE for the following regrsion model: an. Ft = be + Ell15171: + 32.12,- Interpret the value of Rffor this model {1 point}. 1:. Obtain the regression results forthe following regression model: _FI_ 1"; = bi] + logo + 523m + Ellstiller + 14374,- Where 1,,- = If, and I.\" = 35,-. Interpret the value of Rffor this model {1 point]. D. Which of the previous two models would you recommend that the ana lvst use? Explain 1.rour reasons {1 point}
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