Q7: Create a correlation matrix by using all variables present in the dataset. Examine Pearson's correlation...

Transcribed Image Text:

Q7: Create a correlation matrix by using all variables present in the dataset. Examine Pearson's correlation coefficient (r) and associated p-values for each pair of variables. Identify and provide commentary on noteworthy r values, emphasizing their strength and direction. Additionally, discuss the significance or lack thereof, based on the p-values, to enhance your understanding of the relationships between all variables in the dataset. Solution: Correlation Matrix Correlation Matrix XAU/TRY XAU Change % KOZAL KOZAL VORMTRY) KOZAL Change % KOZAA KOZAA Vol (MTRY) KOZAA Change % XAU/TRY Pearson's p-value XAU Change % Pearson's 0.033 df 50 p-value 0.8159 KOZAL Pearson's 0.207 -0.059 50 p-value 01401 50 0679 KOZAL VORMTRY) Pearson's -0.257 -0.106 0481 df 50 50 50 p-value 0.0660 0454 3.09 -4 KOZAL Change % Pearson's -0.070 0.071 df 50 50 0.280 50 0.030 50 p-value 06244 0617 0.0441 0.8306 KOZAA Pearson's 0.597 -0.061 0.049 0334 0.159 df 50 50 50 50 50 p-value 292-6 0.670 1.74-15 0.0156 0.262 111 KOZAA Vol (MTRY) Pearson's 0175 0.031 0.496 0.720 0190 0.527 df 50 p-value 02138 50 0.830 50 50 50 50 1.82 -4 931e-10 0.177 6.05-5 KOZAA Change % Pearson's r -0.010 df 50 0.053 50 0,195 50 p-value 0.9446 0710 0.1650 0.175 50 0.2143 0.732 0211 0.230 50 6.82e-10 50 0.134 50 0.101 Q8: Calculate the variance of weekly percent changes for KOZAA, KOZAL, and gold (XAU). Compare the obtained variances to assess the relative risk associated with investing in each. Provide insights into which investment exhibits higher or lower volatility based on the variance of its weekly percent changes. Solution: Descriptives Descriptives KOZAL Change % XAU Change % KOZAA Change % N 52 52 52 Missing 1 1 1 Mean 0.0983 1.09 0.0944 Median -0.530 0.460 -0.410 Standard deviation 7.83 2.71 8.74 Variance 61.2 7.33 76.4 Minimum -19.2 -3.37 -20.8 Maximum 19.2 12.2 28.2 Q6: Predict the value of KOZAL when KOZAA is 62.30 TRY and XAU is 1931.45 TRY. Solution: Linear Regression Model Fit Measures Model 1 R R 0.928 0.861 Model Coefficients - KOZAL Predictor Estimate SE t Intercept 12.20411 1.0953 11.14 4.91e-15 KOZAA 0.39848 0.0234 17.01 3.34e-22 XAU/TRY -0.00578 8.21e-4 -7.04 5.80 -9 Intercept (BO): 12.20411 KOZAA coefficient (B1): 0.39848 XAU coefficient (B2): -0.00578 The formula for the model is: KOZAL BO + B1xKOZAA + B2XXAU B1 * KOZAA = 0.39848 62.30 TRY 24.89 TRY B2 * XAU = -0.005781931.45 TRY=-11.10 TRY KOZAL = 12.20411 TRY + 24.89 TRY - 11.10 TRY = 25.80 Q7: Create a correlation matrix by using all variables present in the dataset. Examine Pearson's correlation coefficient (r) and associated p-values for each pair of variables. Identify and provide commentary on noteworthy r values, emphasizing their strength and direction. Additionally, discuss the significance or lack thereof, based on the p-values, to enhance your understanding of the relationships between all variables in the dataset. Solution: Correlation Matrix Correlation Matrix XAU/TRY XAU Change % KOZAL KOZAL VORMTRY) KOZAL Change % KOZAA KOZAA Vol (MTRY) KOZAA Change % XAU/TRY Pearson's p-value XAU Change % Pearson's 0.033 df 50 p-value 0.8159 KOZAL Pearson's 0.207 -0.059 50 p-value 01401 50 0679 KOZAL VORMTRY) Pearson's -0.257 -0.106 0481 df 50 50 50 p-value 0.0660 0454 3.09 -4 KOZAL Change % Pearson's -0.070 0.071 df 50 50 0.280 50 0.030 50 p-value 06244 0617 0.0441 0.8306 KOZAA Pearson's 0.597 -0.061 0.049 0334 0.159 df 50 50 50 50 50 p-value 292-6 0.670 1.74-15 0.0156 0.262 111 KOZAA Vol (MTRY) Pearson's 0175 0.031 0.496 0.720 0190 0.527 df 50 p-value 02138 50 0.830 50 50 50 50 1.82 -4 931e-10 0.177 6.05-5 KOZAA Change % Pearson's r -0.010 df 50 0.053 50 0,195 50 p-value 0.9446 0710 0.1650 0.175 50 0.2143 0.732 0211 0.230 50 6.82e-10 50 0.134 50 0.101 Q8: Calculate the variance of weekly percent changes for KOZAA, KOZAL, and gold (XAU). Compare the obtained variances to assess the relative risk associated with investing in each. Provide insights into which investment exhibits higher or lower volatility based on the variance of its weekly percent changes. Solution: Descriptives Descriptives KOZAL Change % XAU Change % KOZAA Change % N 52 52 52 Missing 1 1 1 Mean 0.0983 1.09 0.0944 Median -0.530 0.460 -0.410 Standard deviation 7.83 2.71 8.74 Variance 61.2 7.33 76.4 Minimum -19.2 -3.37 -20.8 Maximum 19.2 12.2 28.2 Q6: Predict the value of KOZAL when KOZAA is 62.30 TRY and XAU is 1931.45 TRY. Solution: Linear Regression Model Fit Measures Model 1 R R 0.928 0.861 Model Coefficients - KOZAL Predictor Estimate SE t Intercept 12.20411 1.0953 11.14 4.91e-15 KOZAA 0.39848 0.0234 17.01 3.34e-22 XAU/TRY -0.00578 8.21e-4 -7.04 5.80 -9 Intercept (BO): 12.20411 KOZAA coefficient (B1): 0.39848 XAU coefficient (B2): -0.00578 The formula for the model is: KOZAL BO + B1xKOZAA + B2XXAU B1 * KOZAA = 0.39848 62.30 TRY 24.89 TRY B2 * XAU = -0.005781931.45 TRY=-11.10 TRY KOZAL = 12.20411 TRY + 24.89 TRY - 11.10 TRY = 25.80