Question 11 Doug Abtbol is a portfolio Manager for Polyi Investments, a hedge fund that trade in the United States. Abito manage the town on Obudo, a junior portfolio Manager Abitbol looks at economist Inflation forecasts and would like to examine the relationship between the US Consumer Price In (SCP) Costed actual US CPI using regression analysis. Olabudo estimates regression coefficients to test whether the contenus forecastisured login presented in Exhibit 1. Additionally. Olabudo calculates the 95 percent prediction interval of the actual CPUsing a US CPI contenus forecast 2 To conclude the meeting. Abitbol and Olabudo discuss the limitations of regression analysis. Olabudo notes the following limitations et regn was Limitation 1: Public knowledge of regression relationships may negate their future usefulness Limitation 2 Hypothesis tests and predictions based on finear regression will not be valid if regression assumption are violated Based on Exhibit 1, Otabudo should calculate a prediction interval for the actual US CPI closest to Exhibit 1. Regression Output: Estimating US CPI Column2 Columni Columns Columns Columns Regression Statistics 0.9929 ERE USCA Columns Columna Colima Muta Standard error ofte 0.0009 Obuo Contacts 0.0001 002 USC forecast 9.983 0.0155 Notes The absolute value of the critical value for the state is 2.0 at the level of cance The standard deviation of the USCP consensus forecastis 0.7539 The mean of the USCP consensus forecast is = 13350. 2.7981 to 28019 2.7506 to 27544 24981129019 27521 to 2.7520 Question 11 Doug Abtbol is a portfolio Manager for Polyi Investments, a hedge fund that trade in the United States. Abito manage the town on Obudo, a junior portfolio Manager Abitbol looks at economist Inflation forecasts and would like to examine the relationship between the US Consumer Price In (SCP) Costed actual US CPI using regression analysis. Olabudo estimates regression coefficients to test whether the contenus forecastisured login presented in Exhibit 1. Additionally. Olabudo calculates the 95 percent prediction interval of the actual CPUsing a US CPI contenus forecast 2 To conclude the meeting. Abitbol and Olabudo discuss the limitations of regression analysis. Olabudo notes the following limitations et regn was Limitation 1: Public knowledge of regression relationships may negate their future usefulness Limitation 2 Hypothesis tests and predictions based on finear regression will not be valid if regression assumption are violated Based on Exhibit 1, Otabudo should calculate a prediction interval for the actual US CPI closest to Exhibit 1. Regression Output: Estimating US CPI Column2 Columni Columns Columns Columns Regression Statistics 0.9929 ERE USCA Columns Columna Colima Muta Standard error ofte 0.0009 Obuo Contacts 0.0001 002 USC forecast 9.983 0.0155 Notes The absolute value of the critical value for the state is 2.0 at the level of cance The standard deviation of the USCP consensus forecastis 0.7539 The mean of the USCP consensus forecast is = 13350. 2.7981 to 28019 2.7506 to 27544 24981129019 27521 to 2.7520
