Does simple linear regression model appear to be appropriate

Assignment Help Operation Management

Reference no: EM132111673

A sample containing years to maturity and (percent) yield for 40 corporate bonds is contained in the DATAfile named CorporateBonds (Barron's, April 2, 2012). Click on the datafile logo to reference the data. (a) Choose a scatter chart below with years to maturity as the independent variable. (i) (ii) (iii) (iv) Does a simple linear regression model appear to be appropriate? Explain. The input in the box below will not be graded, but may be reviewed and considered by your instructor. (b) Develop an estimated quadratic regression equation with years to maturity and squared values of years to maturity as the independent variables. If required, round your answers to four decimal places. For subtractive or negative numbers use a minus sign even if there is a + sign before the blank. (Example: -300) = + x + x2 How much variation in the sample values of yield is explained by this regression model? If required, round your answer to one decimal places. % Test the relationship between each of the independent variables and the dependent variable at a 0.05 level of significance. How would you interpret this model? The input in the box below will not be graded, but may be reviewed and considered by your instructor. (c) Use Excel to create a plot of the linear and quadratic regression lines overlaid on the scatter chart of years to maturity and yield. Choose the correct chart below. (i) (ii) (iii) (iv) Which model does this chart suggest provides a superior fit to the sample data? (d) What other independent variables could you include in your regression model to explain more variation in yield? The input in the box below will not be graded, but may be reviewed and considered by your instructor.

Reference no: EM132111673

Questions Cloud

Quantity of residential real estate market : If a price ceiling on real estate agency commission is limited at 1% only, what will be the impact on new market equilibrium price and quantity of residential

Alternative to full insurance construct loss matrix : Frank is also considering retention as an alternative to full insurance Construct a loss matrix.

Safety stock to prevent any inventory shortage : You would like to develop a pull production system in your shop floor. your department keeps 10% safety stock to prevent any inventory shortage.

Describe at least one benefit of group brainstorming : Describe at least one specific method for collecting “voice of the customer” data. Describe at least one benefit of group brainstorming.

Does simple linear regression model appear to be appropriate : Does a simple linear regression model appear to be appropriate? Explain.

What purpose does copays and coinsurance serve : What purpose does copays and coinsurance serve? Briefly explain what are the origins and purpose of Medicare?

Quality replacement parts for all major brands : Quality Parts Company has proudly supplied the domestic and international coal industry with quality replacement parts for all major brands

Terms of annual production quantity and cycle time : Please provide your suggestions to achieve that aggressive goal in terms of annual production quantity and cycle time.

Define phase of lean six sigma project : Describe the purpose of the Define phase of a Lean Six Sigma project (in your own words).

User Account

All Pages