uic ids 270

Question Completion Status: 1 2 3 4 5 QUESTION 1 10 points Save Answer Your boss believes that interest rates will go down next year. Based only on this and the slope of the regression line, which of the following is true O Stock returns should also decrease. Stock returns should increase. O All the answers are correct. QUESTION 2 10 points Save Answer Your boss only wants to implement this new investment strategy if you can be very confident that it will work. Based on this and the r-squared figure, which of the following is true O The r-squared is high so you can be very confident. The r-squared is high so you cannot be very confident. The r-squared is low so you can be very confident. The r-squared is low so you cannot be very confident. QUESTION 3 10 points Save Answer The results of the residual plot are: There is a pattern on the residual plot; therefore the regression is not equally accurate for high vs. low interest rates. There is a pattern on the residual plot; therefore the regression is equally accurate for high vs. low interest rates. There is no pattern on the residual plot; therefore the regression is equally accurate for high vs. low interest rates. There is a pattern on the residual plot; therefore the regression is not equally accurate for high vs. low interest rates. QUESTION 4 10 points Save Answer The affect of removing the outlier was: The slope and r-squared figures changed dramatically. OK's The slope and r-squared figures changed, but not by enough to make a difference. 1.8Kis 43% The slope and r-squared did not change. None of the answers is correct. Click Save and Submit to save and submit. Click Save All Answers to save all answers. Save All Answers Close Window Save and SubmitQUESTION 5 10 points Save Answer With regards to the outlier: There was no justification for removing the outlier. O Removing the outlier was justified based only on the fact that the T-Bill Return was high. +0.1 In 1981, the T-Bill Return was high, and this was an unusual year in the economic history of the united states. These two facts are both necessary to justify removing the outlier. 1.8 1