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THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION

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THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
You are interested in exploring the relationship between the income of professors (measured in thousands of dollars)and the number of years they have been employed by the university.You collect the following data from eight professors.
THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION: You are interested in exploring the relationship between the income of professors (measured in thousands of dollars)and the number of years they have been employed by the university.You collect the following data from eight professors.    -Use a computer to run the simple linear regression analysis of income on length of employment.
-Use a computer to run the simple linear regression analysis of income on length of employment.


Definitions:

Macaulay Duration

A measure of the weighted average time until a bond's cash flows are paid back, used to assess interest rate risk.

Yield To Maturity

The total return anticipated on a bond if held until it matures.

Interest-Rate Risk

The risk that an investment's value will change due to a change in the absolute level of interest rates, affecting debt securities inversely with respect to their prices and yields.

Unsystematic Risk

The portion of total risk that is specific to a single investment or to a small group of investments, also known as idiosyncratic or specific risk, which can be mitigated through diversification.

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