a) Write the model equation (in terms of Y's, X's and parameters) that describes the parallel lines fit to the data in the graph. Make sure to define the terms clearly. and any assumptions for the model are clearly stateted. b) A Working-Hotelling Prediction interval for the mutual fund type at size =120 is (18,20). Interprete this interval. Then assess whether this would be more useful to a company of this size than the corresponding CI for the mean response.

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a) Write the model equation (in terms of Y's, X's and parameters) that describes the parallel lines fit to the data in the graph. Make sure to define the terms clearly. and any assumptions for the model are clearly stateted.

b) A Working-Hotelling Prediction interval for the mutual fund type at size =120 is (18,20). Interprete this interval. Then assess whether this would be more useful to a company of this size than the corresponding CI for the mean response.

Time
40
30
20
10
0
0
50
•
100
Scatterplot of Time vs Size
•
150
Size
200
250
*
300
H
Type
Mutual
Stock
Transcribed Image Text:Time 40 30 20 10 0 0 50 • 100 Scatterplot of Time vs Size • 150 Size 200 250 * 300 H Type Mutual Stock
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