8.) The following table gives the annual return, the safety rating (0= riskiest 10 = safest. And the annual expense ratio for 20 foreign funds.

1. Develop an estimated regression equation relating the annual return to the safety ratings and the annual expense ratio.
2. Estimate the annual return for a firm that has a safety rating of 7.5 and an annual expense ratio of 2.
   42.) The following data show the curb weight, horsepower and 1/4 ^th mile speed for 116 popular sports and GT cars. Suppose the price of each sports car is also available. See data set as follows.
   a. find the estimated regression equation which uses price and horsepower to predict 1/4 ^th mile speed.
   b. plot the standardized residuals against y. Does the residual plot support the assumption about ‘e’ ?
   Explain.
3. Check for any outliers. What are your conclusions?
4. Are there any influential observations? Explain.

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Deliverable: Word Document