Question: A data set containing information for 45 mutual funds that are part of the Morningstar Funds 500 follows. The data set includes the following five

A data set containing information for 45 mutual funds that are part of the Morningstar Funds 500 follows. The data set includes the following five variables: Fund Type: The type of fund, labeled DE (Domestic Equity), IE (International Equity), and FI (Fixed Income) Net Asset Value ($): The closing price per share on December 31, 2007 5-Year Average Return (%): The average annual return for the fund over the past five years Expense Ratio (%): The percentage of assets deducted each fiscal year for fund expenses Morningstar Rank: The risk adjusted star rating for each fund; Morningstar ranks go from a low of 1-Star to a high of 5-Stars a. Develop an estimated regression equation that can be used to predict the 5-year average return given the type of fund. At the .05 level of significance, test for a significant relationship. b. Did the estimated regression equation developed in part (a) provide a good fit to the data? Explain. c. Develop the estimated regression equation that can be used to predict the 5-year average return given the type of fund, the net asset value, and the expense ratio. At the .05 level of significance, test for a significant relationship. Do

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