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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
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: 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 R2. 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%. Annual Mutual Fund Investment and Interest Rates Annual Mutual Fund Investment Average Interest (Thousands of Dollars) Rate (%) 1,020 4.4 1,220 4.9 1,920 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 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: 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 R2. 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%. Annual Mutual Fund Investment and Interest Rates Annual Mutual Fund Investment Average Interest (Thousands of Dollars) Rate (%) 1,020 4.4 1,220 4.9 1,920 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
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