Many countries, especially those in Europe, have significant gold holdings. But many of these countries also have massive debts. The following data show the total value of gold holdings in billions of U. S. dollars and the debt as a percentage of the gross domestic product for nine countries (WordPress and Trading Economics websites, February 24, 2012). Country Gold Value ($ billions) Debt (% of GDP)
China 63 17.7
France 146 81.7
Indonesia 203 83.2
Germany 33 69.2
Italy 147 119
Netherlands 36 63.7
Russia 50 9.9
Switzerland 62 55
United States 487 93.2
a. Using the entire data set, develop the estimated regression equation that can be used to predict the debt of a country given the total value of its gold holdings (to 4 decimals (to 4 decimals).
b. Suppose that after looking at the scatter diagram in part (a) that you were able to visually identify what appears to be an influential observation.
c. Does this approach confirm the conclusion you reached in part (b)? The slope of the estimated regression equation is now observation has a big observation as compared to a value of when this observation is included.

Which stage of group development involves members introducing themselves to each other?

Suppose you win a small lottery and have the choice of two ways to be paid: you can accept the money in a lump sum or in a series of payments over time. if you pick the lump sum, you get $2,950 today. if you pick payments over time, you get three payments: $1,000 today, $1,000 1 year from today, and $1,000 2 years from today. 1) at an interest rate of 6% per year, the winner would be better off accepting the (lump sum / payments over time), since it has the greater present value. 2) at an interest rate of 9% per year, the winner would be better off accepting the (lump sum / payments over time), since it has the greater present value. 3) years after you win the lottery, a friend in another country calls to ask your advice. by wild coincidence, she has just won another lottery with the same payout schemes. she must make a quick decision about whether to collect her money under the lump sum or the payments over time. what is the best advice to give your friend? a) the lump sum is always better. b) the payments over time are always better. c) it will depend on the interest rate; advise her to get a calculator. d) none of these answers is good advice.

Suppose you hold a portfolio consisting of a $10,000 investment in each of 8 different common stocks. the portfolio's beta is 1.25. now suppose you decided to sell one of your stocks that has a beta of 1.00 and to use the proceeds to buy a replacement stock with a beta of 1.55. what would the portfolio's new beta be? do not round your intermediate calculations.