Mutual Fund Returns Analysis Quiz

What is one of the variables included in the mutual fund data set?

Which fund type is NOT included in the data set?

What does the Expense Ratio (%) represent?

What is the significance of the Morningstar Rank?

Which of the following is true about the regression analysis developed?

Which of the following defines 3StarRank in the context of dummy variables?

What is the purpose of eliminating non-significant independent variables in regression analysis?

Which statistical significance level is mentioned for testing relationships in the regression equation?

Mutual Fund Returns Analysis

Data set includes 45 mutual funds with variables like fund type, net asset value, 5-year average return, expense ratio, and Morningstar rank.

Regression Analysis for 5-Year Average Return (Part a)

Aims to predict 5-year average return based on fund type.
Statistical significance will be tested at 0.05 level.

Goodness of Fit (Part b)

Evaluation of how well the estimated regression equation from part (a) fits the data will be performed.
Justification for the fit will be provided.

Multiple Regression Analysis for 5-Year Average Return (Part c)

Aims to predict 5-year average return considering fund type, net asset value, and expense ratio.
Significance at a 0.05 level will be tested. Variable removal will be considered if appropriate. Reasoning for variable deletion/retention will be provided.

Regression Analysis with Categorical Variable (Part d)

Uses Morningstar Rank (2-Star to 5-Star) as a categorical variable using dummy variables (3StarRank, 4StarRank, 5StarRank).
Predicts 5-year average return based on fund type, expense ratio, and Morningstar Rank.
Non-significant independent variables will be removed at a 0.05 significance level.

Prediction (Part e)

Predicts 5-year average return for a specific domestic equity fund with a given expense ratio and Morningstar rank.

This quiz covers various aspects of mutual fund returns analysis, focusing on regression techniques. You will explore predicting the 5-year average return based on fund type, net asset value, and expense ratio, as well as assessing the goodness of fit for your models. Test your understanding of statistical significance and variable management in regression analysis.