A statistical program is recommended. A sample containing years to maturity and yield (9%) for 40 corporate bonds is contained in the data file named CorporateBonds.t (a) Develop a scatter diagram of the data using x = years to maturity as the independent variable. 10 10 10- 10- 9 9- 9. 8- 7+ 7- 6 6. 4. 3 2 2 1- .. 10 15 20 25 30 35 10 15 20 25 30 35 10 15 20 25 30 35 5 10 15 20 25 30 35 Years to Maturity Years to Maturity Years to Maturity Years to Maturity Does a simple linear regression model appear to be appropriate? O Given the downward trend of the data on the left side of the plot, a linear regression model would predict lower values for the data on the right side of the plot. So, a curvilinear regression model appears to be more appropriate. O Given the upward trend of the data on the left side of the plot, a linear regression model would predict higher values for the data on the right side of the plot. So, a curvilinear regression model appears to be more appropriate. O Since the data on the left and right sides of the plot both trend downward at about the same rate, a linear model is appropriate. O Since the data on the left and right sides of the plot both trend upward at about the same rate, a linear model is appropriate. (b) Develop an estimated regression equation with x = years to maturity and x as the independent variables. (Round your numerical values to two decimal places.) (c) As an altermative to fitting a second-order model, fit a model using the natural logarithm of years to maturity as the independent variable; that is, ý = b, + b, In(x). (Round your numerical values to two decimal places.) Does the estimated regression using the natural logarithm of x provide a better fit than the estimated regression developed in part (b)? Explain. O The regression equation developed in part (b) provides a better fit since it uses more independent variables than the equation developed in part (c). O The regression equation developed in part (c) provides a better fit since its R value is higher and it predicts that yield will always increase with respect to years to maturity. O The regression equation developed in part (b) provides a better fit since its R value is higher and it predicts that yield will begin to decrease after a certain point with respect to years to maturity. O The regression equation developed in part (c) provides a better fit because it has less influential observations than the equation developed in part (b).