Question

Score: 0.2 of 1 pt 10 of 11 (11 complete) HW Score: 72.66% , 7.99 of 11 pts % 4.1.51 Question Help During the 1990s, investors made investment decisions based on market performance. As the nature of investing shifted (more day traders and faster flow of information using technology), the relationship between market performance (Retun) in percent and money flowing (Flow) into mutual funds ($ million) shifted. The least squares linear regression is shown below. Complete parts a through d. (You may assume that the assumptions and conditions for regression are met.) Flow 9036+775Return C. The intercept is the actual value of the money Flow if the Return was 0 % . D. The intercept is the predicted value of the money Flow if the Retun was 0 % . Flas binterpret the slope in the linear model. Choose the correct answer below. nstal O A. Fund Return increases by $775 million for every 1 % increase in money Flow B. Money Flow increases by $775 million for every 1 % increase in fund Returm O C. Money Flow increases by $775 million for every 1 % decrease in fund Return. O D. Fund Return increases by $775 million for every 1 % decrease in money Flow rld udy cWhat is the predicted fund Flow for a month that had a market Return of 0 % ? The predicted fund Flow is $ milion. 7 Enter your answer in the answer box and then click Check Answer. Clear All Check Answer 1 part remaining

Answer 1

Ans:

c)Given that

Regression equation:

Predicted flow=9036+775*return

When return=0%

Then

Predicted flow=9036+775*0

Predicted flow=9036