Readers Are Encouraged to Use Microsoft Excel to Solve This

question 35

Multiple Choice

Readers are encouraged to use Microsoft Excel to solve this problem.What is the slope and intercept in the regression equation for problem 31? (board score) = intercept + (slope) * (exam score)

• A)Intercept = 7.15, slope = 0.502
• B)Intercept = 6.15, slope = 0.602
• C)Intercept = 5.15, slope = 0.702
• D)Intercept = 4.15, slope = 0.802

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Definitions:

Dollar-Weighted Return

A measure of an investment's performance that takes into account the timing and amount of all cash inflows and outflows.

Geometric Average Return

The average rate of return on an investment that is calculated by multiplying n variables and then taking the n-th root of the product.

Arithmetic Average Return

The simple mean of a set of returns, calculated by summing the returns over a period and dividing by the number of periods.

Nominal Return

The amount of money gained or lost on an investment, without adjusting for inflation, as opposed to the real return which is adjusted for inflation.