# Question

We are studying mutual bond funds for the purpose of investing in several funds. For this particular study, we want to focus on the assets of a fund and its five-year performance. The question is: Can the five-year rate of return be estimated based on the assets of the fund? Nine mutual funds were selected at random, and their assets and rates of return are shown below.

a. Draw a scatter diagram.

b. Compute the correlation coefficient.

c. Write a brief report of your findings for parts (a) and (b).

d. Determine the regression equation. Use assets as the independent variable.

e. For a fund with $400.0 million in sales, determine the five-year rate of return (inpercent).

a. Draw a scatter diagram.

b. Compute the correlation coefficient.

c. Write a brief report of your findings for parts (a) and (b).

d. Determine the regression equation. Use assets as the independent variable.

e. For a fund with $400.0 million in sales, determine the five-year rate of return (inpercent).

## Answer to relevant Questions

Given the following sample of five observations, develop a scatter diagram, using x as the independent variable and y as the dependent variable, and compute the correlation coefficient. Does the relationship between the ...For each of the 32 National Football League teams, the numbers of points scored and allowed during the 2012 season are shown below.Assuming these are sample data, answer the following questions. You may use statistical ...Bardi Trucking Co., located in Cleveland, Ohio, makes deliveries in the Great Lakes region, the Southeast, and the Northeast. Jim Bardi, the president, is studying the relationship between the distance a shipment must travel ...An air travel service samples domestic airline flights to explore the relationship between airfare and distance. The service would like to know if there is a correlation between airfare and flight distance. If there is a ...Refer to Exercise 6.a. Determine the regression equation.b. Estimate the selling price of a 10-year-old car.c. Interpret the regression equation.Post your question

0