©2005 Brooks/Cole - Thomson Learning FIGURES FOR CHAPTER 5 SUPPLEMENTARY TOPICS IN REGRESSION Click the mouse or use the arrow keys to move to the next page. Use the ESC key to exit this chapter.

©2005 Brooks/Cole - Thomson Learning Figure 5.1 Forecast interval without coefficient uncertainty.

©2005 Brooks/Cole - Thomson Learning Figure 5.2 Forecast interval with coefficient uncertainty.

©2005 Brooks/Cole - Thomson Learning Figure 5.3 U.S. private output, consumption, and investment, 1949:1–1988:4.

©2005 Brooks/Cole - Thomson Learning Figure 5.4 A regression with an intercept implies an APC that is greater than the MPC and that declines with income.

©2005 Brooks/Cole - Thomson Learning Figure 5.5 Price and quantity are determined by supply and demand.

©2005 Brooks/Cole - Thomson Learning Figure 5.6 The characteristic line shows how the risk premium on an asset responds to the risk premium on the market. It predicts a regression through the origin.

©2005 Brooks/Cole - Thomson Learning Figure 5.7 The security market line shows how the expected return E(Rj) on a risky asset is a markup over the risk-free rate.