# Question: Table 11 3 15 compares short term bond funds showing the average maturity

Table 11.3.15 compares short-term bond funds, showing the average maturity (in years until the fund’s bonds mature) and the rate of return as a percentage.

a. Find the correlation between maturity and return and interpret it.

b. Find the least-squares regression equation to predict return from maturity.

c. What rate of return would you expect for a fund with a current maturity of exactly one year?

d. Find the standard error of prediction (for predicting “return” at a given maturity level) and explain its meaning.

e. Is there a significant relationship between maturity and return? How do you know?

a. Find the correlation between maturity and return and interpret it.

b. Find the least-squares regression equation to predict return from maturity.

c. What rate of return would you expect for a fund with a current maturity of exactly one year?

d. Find the standard error of prediction (for predicting “return” at a given maturity level) and explain its meaning.

e. Is there a significant relationship between maturity and return? How do you know?

## Answer to relevant Questions

From Table 11.3.16, consider the daily production and the number of workers assigned for each of a series of days. a. Find the regression equation for predicting production from the number of workers. b. What is the ...Many companies do not restrict themselves to operating inside any particular country, instead choosing to participate in the global economy, and stock market movements should reflect this reality. Consider data on the ...This problem continues the analysis of McDonald’s and Dow Jones stock market data. a. Find the 95% confidence interval for the percent change in McDonald’s stock on a day in which the Dow Jones Index is unchanged. b. ...a. What fraction of the variation in salaries can be explained by the fact that some employees are older than others? b. What salary would you expect for a 42-year-old individual? c. Find the 95% confidence interval for the ...a. What is interaction? b. What can be done to include interaction terms in the regression equation?Post your question