The Bank of Canada is interested in studying the relationship between mortgage rates and median home prices. The data is provided below Median home price $183,800 $183,200 $174,900 Year interest rate (%) 1988 10.30 1989 10.30 1990 10.10 1991 9.30 $173,500 $172,900 $173,200 $173,200 $169,700 1992 S.40 1993 7.30 1994 $.40 1995 7.90 1996 7.60 $174,500 $177,900 $188,100 $203,200 $230,200 1997 1998 7.60 6.90 1999 7.40 2000 S.10 2001 7.00 $258,200 $309,800 $329,800 2002 6.50 2003 2004 5.80 5.80 $431,000 $515,000 $537,000 2005 5.80 2006 6.40 2007 6.30 $496,000 2008 6.00 5.00 4.70 $352,000 2009 $232,000 2010 $291,700 $262,900 $299,200 $321,200 2011 4.40 2012 2013 3.60 4.00 2014 4.10 $373,500 $358,100 $382,500 $402.900 2015 3.80 3.60 4.00 2016 2017 d) Confum the intercept, slope and correlation coefficient by computing them without SPSS ) At the 5% significance level, determine if the model is useful. In responding, construct and test any appropriate hypothesis.
The Bank of Canada is interested in studying the relationship between mortgage rates and median home prices. The data is provided below Median home price $183,800 $183,200 $174,900 Year interest rate (%) 1988 10.30 1989 10.30 1990 10.10 1991 9.30 $173,500 $172,900 $173,200 $173,200 $169,700 1992 S.40 1993 7.30 1994 $.40 1995 7.90 1996 7.60 $174,500 $177,900 $188,100 $203,200 $230,200 1997 1998 7.60 6.90 1999 7.40 2000 S.10 2001 7.00 $258,200 $309,800 $329,800 2002 6.50 2003 2004 5.80 5.80 $431,000 $515,000 $537,000 2005 5.80 2006 6.40 2007 6.30 $496,000 2008 6.00 5.00 4.70 $352,000 2009 $232,000 2010 $291,700 $262,900 $299,200 $321,200 2011 4.40 2012 2013 3.60 4.00 2014 4.10 $373,500 $358,100 $382,500 $402.900 2015 3.80 3.60 4.00 2016 2017 d) Confum the intercept, slope and correlation coefficient by computing them without SPSS ) At the 5% significance level, determine if the model is useful. In responding, construct and test any appropriate hypothesis.
Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter10: Statistics
Section10.6: Summarizing Categorical Data
Problem 4BGP
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Transcribed Image Text:The Bank of Canada is interested in studying the relationship between mortgage rates and median
home prices. The data is provided below
Median home price
$183,800
$183,200
$174,900
$173,500
$172,900
$173,200
$173,200
$169,700
$174,500
$177,900
Year
interest rate (%)
10.30
1988
1989
10.30
1990
10.10
1991
9.30
1992
8.40
1993
7.30
1994
8.40
1995
7.90
1996
7.60
1997
7.60
$188,100
$203,200
$230,200
$258,200
1998
6.90
1999
7.40
2000
8.10
2001
7.00
$309,800
$329,800
$431.000
2002
6.50
2003
5.80
2004
5.80
$515,000
$537,000
2005
5.80
2006
6.40
2007
6.30
$496,000
$352,000
$232,000
$291.700
$262,900
2008
6.00
2009
5.00
2010
4.70
2011
4.40
$299,200
$321,200
$373,500
$358,100
$382,500
$402,900
2012
3.60
2013
4.00
2014
4.10
2015
3.80
2016
3.60
2017
4.00
d) Confirm the intercept, slope and correlation coefficient by computing them without SPSS
e) At the 5% significance level, determine if the model is useful. In responding, construct and
test any appropriate hypothesis.
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