Explore BrainMass
Share

Statistics - Correlation coefficient

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

13-16
We are studying mutual bond funds for the purpose of investing in several funds. For this particular study, we want to focus on the assets of a fund and its five-year performance. The question is: Can the five-year rate of return be estimated based on the assets of the fund? Nine mutual funds were selected at random, and their assets and rates of return are shown below.
Fund Assets ($ millions) Return (%) Fund Assets ($ millions) Return (%)
AARP High Quality Bond $622.2 10.8 MFS Bond A$494.5 11.6
Babson Bond L 160.4 11.3 Nichols Income 158.3 9.5
Compass Capital Fixed Income 275.7 11.4 T. Rowe Price Short-term 681.0 8.2
Galaxy Bond Retail 433.2 9.1 Thompson Income B 241.3 6.8
Keystone Custodian B-1 437.9 9.2

1. Draw a scatter diagram.
2. Compute the coefficient of correlation.
3. Compute the coefficient of determination.
4. Write a brief report of your findings for parts b and c.
5. Determine the regression equation. Use assets as the independent variable.
6. For a fund with $400.0 million in sales, determine the five-year rate of return (in percent)

© BrainMass Inc. brainmass.com October 24, 2018, 7:31 pm ad1c9bdddf
https://brainmass.com/statistics/correlation-and-regression-analysis/statistics-correlation-coefficient-70507

Solution Summary

This solution addresses 6 statistics questions that include drawing a scattergram, determining coefficients of both correlation and determination and the regression equation.

$2.19
See Also This Related BrainMass Solution

Psychological Statistics: Correlation Coefficient

Calculate the correlation coefficient using the following values:

Question: Is there a correlation between student anxiety scores and number of study hours? Interpret your findings.

Caution: The question is missing something? What?

Student Anxiety Scores Study Hours
5 1
10 6
5 2
11 8
12 5
4 1
3 4
2 6
6 5
1 2.

View Full Posting Details