QUESTION 3Portfolio Benchmark22.00%16.00%-7.50%-2.30%8.63%17.88%21.25%-9.63%-3.88%3.25%9.15%11.21%6.25%-37.00%15.00%9.63%15.25%5.75%-42.00%13.75%An analyst is trying to understand the variation of portfolio returns, shown in the left column, by analyzing the variation of benchmarkreturns in the right column. Here, the analyst uses the benchmark returns as the explanatory variable, i.e., the x-variable, to explain thevariation of portfolio returns, the y -variable. The analyst performs a regression analysis between the x and y variables.The explanatory power, or the so-called R Squared, of this regression, is near 97%. This meansthe regression model does a poor job of explaining the variation of the y-variablethe regression model does a good job of explaining the variation of the y-variablethe regression model does a good job of explaining the variation of the x-variablethe regression model does a poor job of explaining the variation of the x-variable

Answered: An analyst is trying to understand the…

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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Suppose that you are interested in the relationship between Reading and Writing scores. (c) Compute and interpret the R2 value for the relationship between Reading and Writing scores. (d) Interpret the value of the slope in the regression model predicting Reading scores from Writing scores. RDG WRTG 34 44 47 36 42 59 39 41 36 49 50 46 63 65 44 52 47 41 44 50 50 62 44 41 47 40 42 59 42 41 47 41 60 65 39 49 57 54 73 65 47 46 39 44 35 39 39 41 48 49 31 41 52 63 47 54 36 44 47 44 34 46 52 57 42 40 37 44 44 33 71 58 47 46 42 33 42 36 47 41 52 54 52 54 39 39 31 41 60 54 47 31 39 28 42 36 47 57 42 49 36 41 50 33 34 34 55 55 28 46 42 42 44 44 60 52 39 57 36 37 44 44 39 42 39 34 42 39 42 44 52 54 65 65 42 26 47 62 52 62 44 54 52 54 47 44 65 57 63 65 60 59 47 44 65 57 53 61 68 63 55 56 39 53 52 52 65 67 52 44 57 67 63…
A statistical program is recommended. The owner of Showtime Movie Theaters, Inc., would like to predict weekly gross revenue as a function of advertising expenditures. Historical data for a sample of eight weeks follow. Weekly Television Gross Newspaper Advertising Advertising ($1,000s) ($1,000s) Revenue ($1,000s) 96 5.0 1.5 90 2.0 2.0 95 4.0 1.5 92 2.5 2.5 95 3.0 3.3 94 3.5 2.3 94 2.5 4.2 94 3.0 2.5 1 (a) Develop an estimated regression equation with the amount of television advertising as the independent variable. (Round your numerical values to two decimal places. Let x₁ represent the amount of television advertising in $1,000s and y represent the weekly gross revenue in $1,000s.) y = 88.64 + 1.60x1 X (b) Develop an estimated regression equation with both television advertising and newspaper advertising as the independent variables. (Round your numerical values to two decimal places. Let x₁ represent the amount of television advertising in $1,000s, x₂ represent the amount of…
when a regression is used as a method of predicting dependent variables from one or more independent variables. How are the independent variables different from each other yet related to the dependent variable?
Data were collected that included information on the weight of the trash (in pounds) on the street one week and the number of people who live in the house. The figure shows a scatterplot with the regression line. Complete parts (a) through (d) below.
Used cars 2010 Vehix.com offered several used ToyotaCorollas for sale. The following table displays the ages ofthe cars and the advertised prices. a) Make a scatterplot for these data.b) Do you think a linear model is appropriate? Explain.c) Find the equation of the regression line. d) Check the residuals to see if the conditions for infer-ence are met. Age (yr) Price ($) Age (yr) Price ($)1 15988 6 99951 13988 6 119882 14488 7 89903 10995 8 94883 13998 8 89954 13622 9 59904 12810 10 41005 9988 12 2995
In linear regression analysis, the coefficient for the x-variable when the y-variable is regressed on the x-variable can be thought of as: Note: more than one answer may be correct Group of answer choices How much the value of the predicted y-variable will change when the x-variable changes by one unit. In the simple (two variable) linear regression model, the coefficient can be thought as the slope coefficient that measures the responsiveness of y to changes in x. The estimated coefficient will change if the sample containing x and y changes. The sample coefficient is an estimate of the population coefficient Before interpreting the coefficient for the x-variable, we should test whether the coefficient is statistically significant.
4)
A social scientist collects information about counties in California and finds that the correlation between average income of the county and a rating of healthcare quality in the county is 0.78. A scatterplot of the two variables is football shaped. A particular county has an average income that is 0.4 SDs above the average of all counties. Using regression, we would predict that its healthcare quality is _________ SDs above the average healthcare quality for all counties, and that it is therefore at the _________ percentile of healthcare quality among all counties. Choose the answer below to fill in the two blanks. Group of answer choices 0.31; 24th 0.78; 58th 0.78; 79th 0.31; 62nd PreviousNext

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