Homework Assignment #8
Name: Tyler Dekarske
All calculations should be done in Word using Equation Editor and all charts and graphs should
be done in Excel.
Use the output below to answer the following questions.
A financial advisor wants to know if there is a relationship between ING and investment
banking. Does ING predict good investments in banking? The results are as follows:
Regression Statistics
R Square
Adjusted R Square
Observations
0.8921
0.8742
8
ANOVA
df
Regression
Residual
Total
Variable
Intercept
Investment
s
SS
MS
F
1
??
7
180.2143
21.7857
??
180.2143
??
??
Coefficient
-0.3214
4.1429
Standard
Error
1.4848
0.5881
T value
??
??
P value
0.8358
0.0004
Significance
F
0.00041
Lower
95%
??
??
1)
Fill in the tables with the missing values? (You should have 10 different values you need to find)
2)
What is the correlation coefficient of the model?
Upper
95%
??
??
3)
What is the correlation of determination?
4)
What is the estimated regression equation?
5)
Interpret the slope.
6)
What is the hypothesis scenario?
7)
Use the estimated regression equation to predict INQ with an Investment of 6.
8)
Would your predicted in #7 be interpolation or extrapolation? Why? (Hint: Use the 95% Confidence
Interval for reference)
9)
Is there evidence of a significant relationship between ING and Investments? Use alpha = .05.
10)
One pair of data in this sample is (2, 5). Which says that Investments of 2 had an ING of 5,
calculate a residual for this data point. (Hint: calculate the difference between the observed ING and
predicted ING)
11)
What is the standard error of the estimated regression line?
