Year 2004 2005 2006 2007 2008 Consumer Credit 2210.5 2319.8 2415.0 2551.9 2592.1 Year 2009 2010 2011 2012 2013 Consumer Credit 2551.5 2643.1 2756.0 2924.3 3094.2 nd an equation for the least squares line, letting x equal the number of yea

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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 (in billions of dollars). Answer parts (a) through (e) below.
Year
2004
2005
2006
2007
2008
Consumer
Credit
2210.5
2319.8
2415.0
2551.9
2592.1
Year
2009
2010
2011
2012
2013
GOTO
Consumer
Credit
2551.5
2643.1
2756.0
2924.3
3094.2
a. Find an equation for the least squares line, letting x equal the number of years since 2000.
The equation is Y=x+0
(Use integers or decimals for any numbers in the equation. Round to two decimal places as needed.)
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. Year 2004 2005 2006 2007 2008 Consumer Credit 2210.5 2319.8 2415.0 2551.9 2592.1 Year 2009 2010 2011 2012 2013 GOTO Consumer Credit 2551.5 2643.1 2756.0 2924.3 3094.2 a. Find an equation for the least squares line, letting x equal the number of years since 2000. The equation is Y=x+0 (Use integers or decimals for any numbers in the equation. Round to two decimal places as needed.)
Part 2
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.)
Part 3
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.)
Part 4
d. If this trend continues linearly, in what year will the
total debt first exceed $4000 billion?
Part 5
e. Find and interpret the correlation coefficient.
Select the correct choice below and fill in the answer
box to complete your choice.
(Type an integer or decimal rounded to four decimal
places as needed.
Transcribed Image Text:Part 2 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.) Part 3 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.) Part 4 d. If this trend continues linearly, in what year will the total debt first exceed $4000 billion? Part 5 e. Find and interpret the correlation coefficient. Select the correct choice below and fill in the answer box to complete your choice. (Type an integer or decimal rounded to four decimal places as needed.
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