outstanding consumer credit (in billions of dollars). Answer parts (a) through (e) below. - The total amount of consumer credit has been increasing steadily in recent years. The following table gives the total Year Consumer Consumer Year Credit 2250.5 Credit 2003 2008 2557.5 2004 2319.8 2009 2648.1 2005 2415.0 2010 2757.0 2006 2540.9 2011 2928.3 2007 2597.1 2012 3097.2 a. Find an equation for the least squares line, letting x equal the number of years since 2001. The equation is Y = (Use integers or decimals for any numbers in the equation. Round to two decimal places as needed.) x + b. Based on the answer to part (a), at approximately what rate is consumer credit growing per year? The consumer credit is growing about $ billion per year. (Round to two decimal places as needed.) c. Use the result from part (a) to predict the amount of consumer credit in the year 2016. The amount of consumer credit in the year 2016 will be $ billion. (Round to the nearest whole number.) d. If this trend continues linearly, in what year will the total debt first exceed $4000 billion? If this trend continues linearly, in the year total debt will first exceed $4000 billion. e. Find and interpret the correlation coefficient. Select the correct choice below and fill in the answer box to complete- choice. (Type an integer or decimal rounded to four decimal places as needed.) A. The correlation coefficient is which indicates a strong linear correlation. B. The correlation coefficient is which indicates there is no linear correlation.
outstanding consumer credit (in billions of dollars). Answer parts (a) through (e) below. - The total amount of consumer credit has been increasing steadily in recent years. The following table gives the total Year Consumer Consumer Year Credit 2250.5 Credit 2003 2008 2557.5 2004 2319.8 2009 2648.1 2005 2415.0 2010 2757.0 2006 2540.9 2011 2928.3 2007 2597.1 2012 3097.2 a. Find an equation for the least squares line, letting x equal the number of years since 2001. The equation is Y = (Use integers or decimals for any numbers in the equation. Round to two decimal places as needed.) x + b. Based on the answer to part (a), at approximately what rate is consumer credit growing per year? The consumer credit is growing about $ billion per year. (Round to two decimal places as needed.) c. Use the result from part (a) to predict the amount of consumer credit in the year 2016. The amount of consumer credit in the year 2016 will be $ billion. (Round to the nearest whole number.) d. If this trend continues linearly, in what year will the total debt first exceed $4000 billion? If this trend continues linearly, in the year total debt will first exceed $4000 billion. e. Find and interpret the correlation coefficient. Select the correct choice below and fill in the answer box to complete- choice. (Type an integer or decimal rounded to four decimal places as needed.) A. The correlation coefficient is which indicates a strong linear correlation. B. The correlation coefficient is which indicates there is no linear correlation.
Chapter12: Sequences, Series And Binomial Theorem
Section12.3: Geometric Sequences And Series
Problem 12.58TI: What is the total effect on the economy of a government tax rebate of $500 to each household in...
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Transcribed Image Text:The total amount of consumer credit has been increasing steadily in recent years. The following table gives the total
outstanding consumer credit (in billions of dollars). Answer parts (a) through (e) below.
6.
Year
Consumer
Consumer
Year
Credit
Credit
2003
2250.5
2008
2557.5
2004
2319.8
2009
2648.1
2005
2415.0
2010
2757.0
2006
2540.9
2011
2928.3
2007
2597.1
2012
3097.2
a. Find an equation for the least squares line, letting x equal the number of years since 2001.
The equation is Y =
X+
(Use integers or decimals for any numbers in the equation. Round to two decimal places as needed.)
b. Based on the answer to part (a), at approximately what rate is consumer credit growing per year?
The consumer credit is growing about $
billion per year.
(Round to two decimal places as needed.)
c. Use the result from part (a) to predict the amount of consumer credit in the year 2016.
The amount of consumer credit in the year 2016 will be $
billion.
(Round to the nearest whole number.)
d. If this trend continues linearly, in what year will the total debt first exceed $40000 billion?
If this trend continues linearly, in the year
total debt will first exceed $4000 billion.
e. Find and interpret the correlation coefficient. Select the correct choice below and fill in the answer box to complete y
choice.
(Type an integer or decimal rounded to four decimal places as needed.)
O A. The correlation coefficient is
which indicates a strong linear correlation.
B. The correlation coefficient is
which indicates there is no linear correlation.
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