A funding agency has performed an internal study in which the number of loan requests (Y variable, in thousands) is related with the interest rate in percentage terms (X variable) applied to these loans. The following information is known: the mean of x= 5, the mean of y = 20000, the standard deviation of x = 1.5, the standard deviation of y = 5000 and the covariance of x and y = -5400. First, obtain the regression line that allows to estimate the number of loan requests (Y) as a function of its interest rate in percentage terms (X). Interpret the value of the obtained coefficients. Then, obtain an appropriate indicator of the goodness of fit of this model and discuss the result. Regarding the variability, obtain the explained and the error components of the variance. Interpret all the results Finally, Estimate the number of loans requests we can expect with an interest rate of 3.5%. Analyze the reliability of this predictio
A funding agency has performed an internal study in which the number of loan requests (Y variable, in thousands) is related with the interest rate in percentage terms (X variable) applied to these loans. The following information is known: the mean of x= 5, the mean of y = 20000, the standard deviation of x = 1.5, the standard deviation of y = 5000 and the
First, obtain the regression line that allows to estimate the number of loan requests (Y) as a
Then, obtain an appropriate indicator of the goodness of fit of this model and discuss the result. Regarding the variability, obtain the explained and the error components of the variance. Interpret all the results
Finally, Estimate the number of loans requests we can expect with an interest rate of 3.5%. Analyze the reliability of this prediction. What is the needed assumption to perform this prediction?
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
