Using the data set on the Excel regression tool provided, create a predictive model capable of forecasting 5-year average return of a mutual fund with expense ratio, net asset value, and Morningstar rank. Morningstar rank has been recoded into an indicator variable. (2 and 3 star ranks are coded 0, 4 and 5 star ranks are coded 1).

1. Examine the effects of each independent variable (IV) on the dependent variable. You do not need to include any plots, but do include any key statistics that show the effect of each IV. If you had to select only one IV, what would it be?
2. Using all 3 IVs, what is your % of explained variability?
3. What is the regression equation, using all 3 IVs, to predict 5-year average return?

Data:

1	2	3	4
NAV	5-yr	Exp Rat	Morning *
2.6	3.49	0.45	0
19.47	3.78	0.16	0
16.45	4.25	0.33	1
12.1	4.31	0.58	0
12.51	4.31	0.41	1
11.02	4.34	0.49	1
13.23	4.41	0.45	1
10.95	4.63	0.62	0
10.56	5.14	0.6	1
23.59	10.47	1.1	0
40.37	11.23	1.05	0
46.39	12.09	1.03	0
24.94	12.32	0.97	0
28.88	12.39	0.67	0
32.26	12.81	0.9	0
54.83	12.99	0.86	0
32.12	13.41	0.29	1
45.6	13.5	0.89	0
35.41	13.98	1.29	1
42.45	14.4	0.56	1
17.44	15.16	1.31	1
15.3	15.31	1.32	0
31.92	15.33	1.08	1
37.53	15.46	1.27	1
16.92	15.67	1.18	0
35.73	15.85	1.2	1
31.07	15.91	1.01	0
49.81	16.7	1.44	1
50.67	16.77	1.31	1
22.46	16.91	0.8	1
13.47	17.23	0.53	0
36.58	17.23	1.08	1
15.29	17.25	1.02	0
24.32	17.77	1.32	1
68.54	17.99	0.89	1
31.86	18.23	1	1
13.44	21.35	1.25	0
32.58	19.63	0.23	0
23.71	21.77	0.64	1
48.39	23.46	0.9	1
26.27	23.68	1.36	1
25.52	24.95	1.23	0
27.86	32.7	1.16	0
14.37	43.27	2.1	0
53.89	55.27	1.38	1