Investment analysts generally believe that the interest rate on bonds is inversely related to the prime interest rate for loans. Use the following data to construct the least-squares regression line to predict bond rates by the prime interest rate: Bond Rate (%) Prime Interest Rate (%) 15 16 12 8 15 4 7 17 ( a ) Compute ΣΧ, ΣΧ, ΣΥ, ΣΥ2 and ΣΧΥ. (b) Find and interpret the slope of the estimated regression line (c) Find and interpret the intercept of the estimated regression line.
Investment analysts generally believe that the interest rate on bonds is inversely related to the prime interest rate for loans. Use the following data to construct the least-squares regression line to predict bond rates by the prime interest rate: Bond Rate (%) Prime Interest Rate (%) 15 16 12 8 15 4 7 17 ( a ) Compute ΣΧ, ΣΧ, ΣΥ, ΣΥ2 and ΣΧΥ. (b) Find and interpret the slope of the estimated regression line (c) Find and interpret the intercept of the estimated regression line.
Functions and Change: A Modeling Approach to College Algebra (MindTap Course List)
6th Edition
ISBN:9781337111348
Author:Bruce Crauder, Benny Evans, Alan Noell
Publisher:Bruce Crauder, Benny Evans, Alan Noell
Chapter3: Straight Lines And Linear Functions
Section3.CR: Chapter Review Exercises
Problem 15CR: Life Expectancy The following table shows the average life expectancy, in years, of a child born in...
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