hw3_sol - Statistics 528 - HW3 Solutions 2.1 (a) Grade...

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2.1 (a) Grade would be response and time of study would be explanatory. (b) Relationship. (c) Rain would be explanatory and yield would be response. (d) Relationship. (e) Income would be explanatory and education would be response. 2.4 (a) Stock returns range from -30% to +50%. Treasury bills range from about 1% to15%. (b) At a glance you might see a very weak negative association between interest rates and returns on stocks. A closer look gives that there is no apparent pattern. Stocks show returns between -10% and 30% for all interest rates between1% and 10%. 2.8 (a) Plot below. MA is explanatory because we are using it to predict HAV. 10 20 30 40 10 20 30 40 50 MA HAV (b) The relationship is fairly linear with positive slope. The strength is moderate. There is one outlier with the highest value of HAV. (c) MA can be used to predict HAV, but not very precisely. 2.12
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This note was uploaded on 07/26/2011 for the course STA 528 taught by Professor Calder during the Winter '09 term at Ohio State.

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hw3_sol - Statistics 528 - HW3 Solutions 2.1 (a) Grade...

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