Question: The Vantage Fund is a balanced mutual fund that includes a mix of stocks and bonds. Following are the year-end share prices of the fund

The Vantage Fund is a balanced mutual fund that includes a mix of and bonds. Following are the year-end share prices of the fund and Dow Jones Industrial Average for a 20-year period.

Develop a linear regression model for these data and forecast the fund share price for a DJIA of 12,000. Does there appear to be a strong relationship between the fund€™s share price and theDJIA?

Year Share Price DJIA Year Share Price DJIA 19.08 3301 2 15.06 258 20.0 3754 3 14.98 121 19.3 3834 2443 511 5 16.11 895 5 264 6448 29.45 7908 7 16.78 2168 29.5 9181 8 17.69 2753 18 27.96 11497 28.21 178 27.26 10150 14.75 104611 15.73 156 14 16.07 1938 16 160 2633 19 17.81 3168 20 10

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