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The total amount of consumer credit has been increasing steadily in recent years. The following table gives the total outstanding consumer credit. Answer part a. through e 2007 Year 2004 2005 2006 2008 Consumer credit (in billions of doiors.) 2210.5 2350.8 2437.0 2540.9 2592.1 a. Find an equation for the least squares line, letting x equal the number of years since 2000. b. Use part a to find, at approximately what rate is the consumer credit growing per year? c. Use the result from part a to predict the amount of consumer credit in the year 2016, d. If this trend continues linearly, in what year will the total debt first exceed $4000 billion? e. Find and interpret the correlation coefficient.

The total amount of consumer credit has been increasing steadily in recent years. The following table gives the total outstanding consumer credit. Answer part a. through e 2007 Year 2004 2005 2006 2008 Consumer credit (in billions of doiors.) 2210.5 2350.8 2437.0 2540.9 2592.1 a. Find an equation for the least squares line, letting x equal the number of years since 2000. b. Use part a to find, at approximately what rate is the consumer credit growing per year? c. Use the result from part a to predict the amount of consumer credit in the year 2016, d. If this trend continues linearly, in what year will the total debt first exceed $4000 billion? e. Find and interpret the correlation coefficient.

Linear Algebra: A Modern Introduction
Linear Algebra: A Modern Introduction
4th Edition
ISBN:9781285463247
Author:David Poole
Publisher:David Poole
Chapter7: Distance And Approximation
Section7.3: Least Squares Approximation
Problem 34EQ
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The total amount of consumer credit has been increasing steadily in recent years. The following table gives the total outstanding consumer credit. Answer part a. through e 2007 Year 2004 2005 2006 2008 Consumer credit (in billions of doiors.) 2210.5 2350.8 2437.0 2540.9 2592.1 a. Find an equation for the least squares line, letting x equal the number of years since 2000. b. Use part a to find, at approximately what rate is the consumer credit growing per year? c. Use the result from part a to predict the amount of consumer credit in the year 2016, d. If this trend continues linearly, in what year will the total debt first exceed $4000 billion? e. Find and interpret the correlation coefficient.
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. Answer part a. through e 2007 Year 2004 2005 2006 2008 Consumer credit (in billions of doiors.) 2210.5 2350.8 2437.0 2540.9 2592.1 a. Find an equation for the least squares line, letting x equal the number of years since 2000. b. Use part a to find, at approximately what rate is the consumer credit growing per year? c. Use the result from part a to predict the amount of consumer credit in the year 2016, d. If this trend continues linearly, in what year will the total debt first exceed $4000 billion? e. Find and interpret the correlation coefficient.
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