Recent Question/Assignment

Question 3. (18 Marks)
Because inflation reduces the purchasing power of the dollar, investors seek investments that will provide protection against inflation; that is, investments that will provide higher returns when inflation is higher. It is frequently stated that ordinary shares provide just such a hedge against inflation. The annual Australian inflation rate (as measured by percentage changes in the consumer price index) and the annual All-Ordinaries Index from 1995 to 2015 are stored in file INFLATION.XLSX (in the course website).
Using EXCEL, answer below questions:
a. Using an appropriate graphical descriptive measure (relevant for time series data) describe the two variables. (1 mark)
b. Use an appropriate plot to investigate the relationship between RATE OF INFLATION and ALL-
ORDINARIES INDEX. Briefly explain the selection of each variable on the X and Y axes and why?
(2 marks)
c. Prepare a numerical summary report about the data on the two variables by including the summary measures, mean, median, range, variance, standard deviation, and coefficient of variation, smallest and largest values, and the three quartiles, for each variable.
(3 marks)
d. Calculate the coefficient of correlation (r) between RATE OF
INFLATION and ALL-ORDINARIES INDEX. Then, interpret it. (2 marks)
e. Estimate a simple linear regression model and present the estimated linear equation. Then, interpret the coefficient estimates of the linear model. (4 marks)
f. Determine the coefficient of determination R2 and interpret it. (2 marks)
g. Test the significance of the relationship at the 5% significance level. (3 marks)
h. What is the value of the standard error of the estimate (se). Then, comment on the fitness of the linear regression model? (1 mark) Marking criteria

There are 2 files, Word Document and an Excel Document

Editable Microsoft Word Document
Word Count: 331 words including Graphs and References

Editable Microsoft Excel Document
Sheets Count: 1 Worksheet

Note: Available Q3 only

Buy Now at $19.99 USD
This above price is for already used answers. Please do not submit them directly as it may lead to plagiarism. Once paid, the deal will be non-refundable and there is no after-sale support for the quality or modification of the contents. Either use them for learning purpose or re-write them in your own language. If you are looking for new unused assignment, please use live chat to discuss and get best possible quote.

Looking for answers ?