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(e) Provide an interpretation for the population slope for this example. (f) Use

ID: 3351582 • Letter: #

Question

(e) Provide an interpretation for the population slope for this example. (f) Use JMP to find the estimated least square equation. Report this equation in the space below. It is important to use correct symbols here. Specifically define j and in this example. Estimate least squares equation: (g) Provide an interpretation for the estimated intercept in this example. (h) Provide an interpretation for the estimated slope in this example. (i) What is the predicted new money into stock mutual funds during a year when 200 billion dollars of new money goes into bond mutual funds? Show your work if appropriate (i) What is the predicted new money into stock mutual funds during a year when there is a net 6.2 billion dollars leaving bond mutual funds? Show your work if appropriate.

Explanation / Answer

Solutionf

x---bonds

yhat-----stocks

slope=m=-0.629022

estimated least squares equation is

stocks=118.49869-0.629022(bonds)

Solutiong:

for bonds=0 in regression eq

stocks=118.49869-0.629022(bonds)

=118.49869-0.629022(0)

=118.49869

when no money goes into bond mutual funds, we get stock mutual funds=118.49869

Solutionh:

stocks=118.49869-0.629022(bonds)

m=slope=-0.629022

change in stocks/change in bonds=-0.629022

when one dollar goes into bonds ,stocks mutual funds decreases by 0.629022

Solutioni:

substitute in bonds=200

stocks=118.49869-0.629022(bonds)

=18.49869-0.629022(200)

=-107.3057

stocks=107.3057

Solutionj:

stocks=118.49869-0.629022(6.2)

=114.5988

stocks=114.5988