We are studying mutual bond funds for the purpose of investing in several funds. for this particular study, we want to focus on the assets of a fund and its five-year performance. the question is: can the five-year rate of return be estimated based on the assets of the fund? nine mutual funds were selected at random, and theirassets and rates of return are shown below.
assets return assets return
fund ($ millions) (%) fund ($ millions) (%)
aarp high qualitybond $622.2 10.8 mfs bond a $494.5 11.6
babson bond l 160.4 11.3 nichols income 158.3 9.5
compass capital fixedincome 275.7 11.4 t. rowe price short-term 681.0 8.2
galaxy bond retail 433.2 9.1 thompson income b 241.3 6.8
keystone custodianb-1 437.9 9.2
required :
1. compute the coefficient of correlation. (round your answer to 3 decimalplaces.)
2. compute the coefficient of determination. (round your answer to 3 decimalplaces.)
3. give a description of the degree of association between thevariables.