Question 7:
pg. 553, exercises q18.16
18.16 a loans officer is interested in the relationship
between the number of housing loan
applications and the prevailing credit card
interest rate. she took a random sample of 8
months from the previous 3 years with the
following results: y
number of loan
bapplications
terest rate
52
12.3
40
13.7
32
13.5
64
12.0
21
14.8
28
14.0
43
13.3
14.4
24
(a) find the least-squares regression line that
allows for prediction of the number of loan
applications from the interest rate.
(b) draw a scatter diagram of the data and drav
the line found in (a).
(c) what does the slope of the line signify in
economic terms?
(d) is the line a good fit to the data? why or
why not?