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The least squares linear regression is shown below. Complete parts a through d . ( You may assume that the assumptions and conditions for regression
The least squares linear regression is shown below. Complete parts a through You may assume that the assumptions and conditions for regression are met.
widehat Flow Return
aInterpret the intercept in the linear model. Choose the correct answer below.
A The intercept is the actual value of the money Flow if the Return was
B The intercept is the predicted value of the money Flow if the Return was
C The intercept is the predicted value of the Return if the money Flow was $
D The intercept is the actual value of the Return if the money Flow was $
bInterpret the slope in the linear model. Choose the correct answer below.
A Fund Return increases by $ million for every increase in money Flow.
B Money Flow increases by $ million for every decrease in fund Return.
C Money Flow increases by $ million for every increase in fund Return.
D Fund Return increases by $ million for every decrease in money Flow.
cWhat is the predicted fund Flow for a month that had a market Return of
The predicted fund Flow is million.
dIf during this month, the recorded fund Flow was $ billion, what is the residual using this linear model? Did the model provide an underestimate or overestimate for this month?
The residual is million dollars. The model provided an
for this month.
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