Question: Assume that there is a positive linear correlation between the variable R (return rate in percent of financial investment) and the variable t (age in

Assume that there is a positive linear correlation between the variable R (return rate in percent of financial investment) and the variable t (age in years of the investment) given by the regression equation R = 2.5t + 5.3.

1- Without further information, can we assume there is a cause-and-effect relationship between the return rate and the age of the investment?

2- If the investment continues to grow at a constant rate, what is the expected return rate when the investment is 7 years old?

3-If the investment continues to grow at a constant rate, how old is the investment when the return rate is 32.8%?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Mathematics Questions!

11. A farmer has a flock of 100 chickens with weights that are normally distributed with a mean of 5.00 pounds and a standard deviation of 0.36 pounds. If nine chickens are selected at random, what...

1. Finish times (to the nearest hour) for 60 dogsled teams are shown below. Use five classes. Categorize the basic distribution shape as uniform, mound-shaped symmetric, bimodal, skewed left, or...

Hospital and emergency department throughput improvement Case Study Discuss all the details of the third activity ( develop the process capability)of the analyse phase and interpret the graphs or...

Hospital and emergency department throughput improvement Case Study Explain and analyze the third outline which is (develop process capability) and interpret the graphs Analyze Phase Analyze Phase...

\f\fTopic 2 Link 1 Link 2 Hypothesis Reasoning Statistics Canada, Table 10-10- 0011-01 Value of sales of alcoholic beverages of liquor Statistics Canada. Table As Beer 35-10-0030-01 Adult Production...

NOTE: In Questions 12-13 Identify Which One, If Any, Of The Three Common Averages--The Mode, Median Or Mean--Probably Serves As The Basis For Each Statement. 12. The average college professor is a...

1. When collecting water data from different sample locations in a lake, a researcher uses the " l stretching a single rope with containers tied to it across the lake and collects samples at every...

Need help with all questions. Please. Financial ratio analysis (25 points) Dino's 2014 and 2015 balance sheets and income statements, together with projections for 2016, are given in Tables 1 and 2....

1) Design a smart door access system using fingerprints as identifiers. 2) Design a smartphone application to control the movement of doors and the operations of the Arduino Uno using. 3) Provide...

The traditional diet of the citizens of the nation of Ironia includes a lot of red meat, and ranchers make up a vital part of Ironias economy. The government of Ironia decides to support its ranchers...

Find the horizontal and vertical asymptotes of the y = 7 x 2 x - 3 x 2 x - 4 2 x = ( smaller x - value ) x = ( larger x - value ) y = Need Help?

A manufacturer of roofing supplies has developed a monthly forecast for their products. Data for the first 6 months of the year is presented in the table below. The company would like to begin the...

For this discussion report on some of the different methods for raising proceeds through contributed capital, the advantages of doing this, and the disadvantages as well. Which methodology would you...

1. For all j in J where J is some indexing set, let U, be a topological space, let V; be a subspace of Uj. Define U = IjUj with the product topology. JEJ Give V the subspace topology where V but...

Consider the matrix A = [3 1 2] 452 764 (a) Derive the set of vectors N(A) = {x: Ax = 0} where 0 denotes the matrix with all zeroes. (3 points) (b) What is the set N(A) called? Does it form a vector...

If a student is guessing randomly on a multiple choice test with 4 possible responses per question, and 16 questions: a) What is the probability of getting 3 correct? b) What is the probability of...

Explain niche marketing strategy with an example

The facts rule: We have a tendency to have more confidence in information that is documented with figures than information that isnt.

The permanence rule: We tend to have more confidence in information that is of a more permanent nature than information that is of a temporary nature.

The official stamp rule: We tend to have more confidence in information that is exempt from the Freedom of Information Act than if the same information was made readily available.