ELEM. STATISTICS TEXT W/ MANUAL+CONNECT
1st Edition
ISBN: 9781260722031
Author: Navidi
Publisher: McGraw-Hill Publishing Co.
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Textbook Question
Chapter 4.1, Problem 36E
Mortgage payments: The following table presents monthly interest rates, in percent, for 30-year and 15-year fixed-rate mortgages, for a recent year.
- Construct a
scatterplot of the 15-year rate (y) versus the 30-year rate (x). - Compute the
correlation coefficient between 30-year and 15-year rates. - When the 30-year rate is below average, would you expect the 15-year rate to be above or below average? Explain.
- Which of the following is the best interpretation of the correlation coefficient?
- When a bank increases the 30-year rate: that causes the 15-year rate to rise as well.
- Interest rates are determined by economic conditions. economic conditions cause 30-year rates to these same conditions cause 15 -year rates to increase as well.
- When a bank increases the 15-year rate, that causes the 30-year rate to rise as well.
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Students have asked these similar questions
Kim is interested in studying the relationship between mortgage rates and median
home prices. The data is provided below
Year Interest Rate (%) Median home price
1988 10.30 $183,800
1989 10.30 $183,200
1990 10.10 $174,900
1991 9.30 $173,500
1992 8.40 $172,900
1993 7.30 $173,200
1994 8.40 $173,200
1995 7.90 $169,700
1996 7.60 $174,500
1997 7.60 $177,900
1998 6.90 $188,100
1999 7.40 $203,200
2000 8.10 $230,200
2001 7.00 $258,200
2002 6.50 $309,800
2003 5.80 $329,800
2004 5.80…
Kim is interested in studying the relationship between mortgage rates and median
home prices. The data is provided below
Year Interest Rate (%) Median home price
1988 10.30 $183,800
1989 10.30 $183,200
1990 10.10 $174,900
1991 9.30 $173,500
1992 8.40 $172,900
1993 7.30 $173,200
1994 8.40 $173,200
1995 7.90 $169,700
1996 7.60 $174,500
1997 7.60 $177,900
1998 6.90 $188,100
1999 7.40 $203,200
2000 8.10 $230,200
2001 7.00 $258,200
2002 6.50 $309,800
2003 5.80 $329,800
2004 5.80…
How strong is the correlation between the inflation rate and 30-year treasury yields? The following data published by Fuji Securities are given as pairs of inflation rates and treasury yields for selected years over a 35-year period.
Inflation Rate
30-Year Treasure Yield
1.57%
3.10%
2.23
3.93
2.19
4.68
4.53
6.57
7.25
8.27
9.25
11.93
5.02
10.27
4.62
8.45
Compute the Pearson product-moment correlation coefficient to determine the strength of the correlation between these two variables. Comment on the strength and direction of the correlation.
(Round the intermediate values to 4 decimal places. Round your answer to 3 decimal places.)
a r= ?
b There is a strong negative relationship or strong positive relationship between the inflation rate and the thirty-year treasury yield. ?
Chapter 4 Solutions
ELEM. STATISTICS TEXT W/ MANUAL+CONNECT
Ch. 4.1 - In Exercises 9-12, fill in each blank with the...Ch. 4.1 - In Exercises 9-12, fill in each blank with the...Ch. 4.1 - In Exercises 9-12, fill in each blank with the...Ch. 4.1 - In Exercises 9-12, fill in each blank with the...Ch. 4.1 - Prob. 13ECh. 4.1 - Prob. 14ECh. 4.1 - In Exercises 13-16, determine whether the...Ch. 4.1 - In Exercises 13-16, determine whether the...Ch. 4.1 - In Exercises 17-20, compute the correlation...Ch. 4.1 - In Exercises 17-20, compute the correlation...
Ch. 4.1 - In Exercises 17-20, compute the correlation...Ch. 4.1 - In Exercises 17-20, compute the correlation...Ch. 4.1 - In Exercises 21-24, determine whether the...Ch. 4.1 - In Exercises 21-24, determine whether the...Ch. 4.1 - In Exercises 21-24, determine whether the...Ch. 4.1 - In Exercises 21-24, determine whether the...Ch. 4.1 - In Exercises 25-30, determine whether the...Ch. 4.1 - In Exercises 25-30, determine whether the...Ch. 4.1 - In Exercises 25-30, determine whether the...Ch. 4.1 - In Exercises 25-30, determine whether the...Ch. 4.1 - In Exercises 25-30, determine whether the...Ch. 4.1 - In Exercises 25-30, determine whether the...Ch. 4.1 - Price of eggs and milk: The following table...Ch. 4.1 - Government funding: The following table presents...Ch. 4.1 - Pass the ball: The following table lists the...Ch. 4.1 - Carbon footprint: Carbon dioxide (CO2) is produced...Ch. 4.1 - Foot temperatures: Foot ulcers are a common...Ch. 4.1 - Mortgage payments: The following table presents...Ch. 4.1 - Blood pressure: A blood pressure measurement...Ch. 4.1 - Prob. 38ECh. 4.1 - Police and crime: In a survey of cities in the...Ch. 4.1 - Age and education: A survey of U.S. adults showed...Ch. 4.1 - Whats the correlation? In a sample of adults, the...Ch. 4.1 - Prob. 42ECh. 4.1 - Changing means and standard deviations: A small...Ch. 4.2 - In Exercises 5-7, fill in each blank with the...Ch. 4.2 - In Exercises 5-7, fill in each blank with the...Ch. 4.2 - In Exercises 5-7, fill in each blank with the...Ch. 4.2 - Prob. 8ECh. 4.2 - Prob. 9ECh. 4.2 - Prob. 10ECh. 4.2 - Prob. 11ECh. 4.2 - Prob. 12ECh. 4.2 - In Exercises 13-16, compute the least-squares...Ch. 4.2 - In Exercises 13-16, compute the least-squares...Ch. 4.2 - In Exercises 13-16, compute the least-squares...Ch. 4.2 - In Exercises 13-16, compute the least-squares...Ch. 4.2 - Compute the least-squares regression he for...Ch. 4.2 - Compute the least-squares regression he for...Ch. 4.2 - In a hypothetical study of the relationship...Ch. 4.2 - Assume in a study of educational level in years...Ch. 4.2 - Price of eggs and milk: The following table...Ch. 4.2 - Government funding: The following table presents...Ch. 4.2 - Pass the ball: The following table lists the...Ch. 4.2 - Carbon footprint: Carbon dioxide (CO2) is produced...Ch. 4.2 - Foot temperatures: Foot ulcers are a common...Ch. 4.2 - Mortgage payments: The following table presents...Ch. 4.2 - Blood pressure: A blood pressure measurement...Ch. 4.2 - Butterfly wings: Do larger butterflies live...Ch. 4.2 - Interpreting technology: The following display...Ch. 4.2 - Interpreting technology: The following display...Ch. 4.2 - Interpreting technology: The following MINITAB...Ch. 4.2 - Interpreting technology: The following MINITAB...Ch. 4.2 - Prob. 33ECh. 4.2 - Prob. 34ECh. 4.2 - Least-squares regression line for z-scores: The...Ch. 4.3 - In Exercises 5-10, fill in each blank with the...Ch. 4.3 - In Exercises 5-10, fill in each blank with the...Ch. 4.3 - In Exercises 5-10, fill in each blank with the...Ch. 4.3 - In Exercises 5-10, fill in each blank with the...Ch. 4.3 - In Exercises 5-10, fill in each blank with the...Ch. 4.3 - Prob. 10ECh. 4.3 - Prob. 11ECh. 4.3 - In Exercises 11-14, determine whether the...Ch. 4.3 - Prob. 13ECh. 4.3 - In Exercises 11-14, determine whether the...Ch. 4.3 - For the following data set: Compute the...Ch. 4.3 - For the following data set: Compute the...Ch. 4.3 - For the following data set: Compute the...Ch. 4.3 - For the following data set: Compute the...Ch. 4.3 - Prob. 19ECh. 4.3 - Prob. 20ECh. 4.3 - Prob. 21ECh. 4.3 - Prob. 22ECh. 4.3 - Hot enough for you? The following table presents...Ch. 4.3 - Presidents and first ladies: The presents the ages...Ch. 4.3 - Mutant genes: In a study to determine whether the...Ch. 4.3 - Imports and exports: The following table presents...Ch. 4.3 - Energy consumption: The following table presents...Ch. 4.3 - Cost of health care: The following table presents...Ch. 4.3 - Prob. 29ECh. 4.3 - Prob. 30ECh. 4.3 - Prob. 31ECh. 4.3 - Transforming a variable: The following table...Ch. 4.3 - Prob. 33ECh. 4.3 - Prob. 34ECh. 4 - Compute the correlation coefficient for the...Ch. 4 - The number of theaters showing the movie Monsters...Ch. 4 - Use the data in Exercise 2 to compute the...Ch. 4 - A scatterplot has a correlation of r=1. 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Weight (in tons) and fuel...Ch. 4 - Prob. 4RECh. 4 - Energy efficiency: A sample of 10 households was...Ch. 4 - Energy efficiency: Using the data in Exercise 5:...Ch. 4 - Prob. 7RECh. 4 - Prob. 8RECh. 4 - Prob. 9RECh. 4 - Prob. 10RECh. 4 - Baby weights: The average gestational age (time...Ch. 4 - Commute times: Every morning, Tania leaves for...Ch. 4 - Prob. 13RECh. 4 - Prob. 14RECh. 4 - Prob. 15RECh. 4 - Describe an example which two variables are...Ch. 4 - Two variables x and y have a positive association...Ch. 4 - Prob. 3WAICh. 4 - Prob. 4WAICh. 4 - Prob. 5WAICh. 4 - Prob. 6WAICh. 4 - Prob. 7WAICh. 4 - Prob. 8WAICh. 4 - Prob. 9WAICh. 4 - The following table, reproduced from the chapter...Ch. 4 - Prob. 2CSCh. 4 - Prob. 3CSCh. 4 - Prob. 4CSCh. 4 - Prob. 5CSCh. 4 - Prob. 6CSCh. 4 - Prob. 7CSCh. 4 - Prob. 8CSCh. 4 - Prob. 9CSCh. 4 - Prob. 10CSCh. 4 - Prob. 11CSCh. 4 - Prob. 12CSCh. 4 - Prob. 13CSCh. 4 - If we are going to use data from this year to...Ch. 4 - Prob. 15CS
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