5. How is the flow of investors' money into stock mutual funds related to the flow of money into bond mutual funds? Data are collected on the net new money flowing into stock and bond mutual funds in the years 1985 to 2000, in billions of dollars. “Net" means that funds flowing out are subtracted from those flowing in. If more money leaves than arrives, the net flow will be negative. To eliminate the effect of inflation, all dollar amounts are in "real dollars" with constant buying power equal to that of a dollar in the year 2000. Below is Minitab output for a regression line using the stock values as the explanatory variable. Regression Analysis: Bonds versus Stocks The regression equation is Bonds = 53.4 - 0.196 Stocks Predictor Coef SE Coef I P Constant 53.41 22.99 2.32 0.036 Stocks -0.1962 0.1550 -1.27 0.226 S = 59.8813 R-Sq = 10.3% R-Sq(adj) = 3.9% (a) What is the conclusion from a test of the slope of the regression line at the 0.05 significance level? Recall that the hypotheses are Ho: B1 = 0 and Ha: B1 # 0. Support your answer using the appropriate critical value or the appropriate p-value. (b) Give a 90% confidence interval for the slope of the regression line.
5. How is the flow of investors' money into stock mutual funds related to the flow of money into bond mutual funds? Data are collected on the net new money flowing into stock and bond mutual funds in the years 1985 to 2000, in billions of dollars. “Net" means that funds flowing out are subtracted from those flowing in. If more money leaves than arrives, the net flow will be negative. To eliminate the effect of inflation, all dollar amounts are in "real dollars" with constant buying power equal to that of a dollar in the year 2000. Below is Minitab output for a regression line using the stock values as the explanatory variable. Regression Analysis: Bonds versus Stocks The regression equation is Bonds = 53.4 - 0.196 Stocks Predictor Coef SE Coef I P Constant 53.41 22.99 2.32 0.036 Stocks -0.1962 0.1550 -1.27 0.226 S = 59.8813 R-Sq = 10.3% R-Sq(adj) = 3.9% (a) What is the conclusion from a test of the slope of the regression line at the 0.05 significance level? Recall that the hypotheses are Ho: B1 = 0 and Ha: B1 # 0. Support your answer using the appropriate critical value or the appropriate p-value. (b) Give a 90% confidence interval for the slope of the regression line.
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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