a) Estimate a simple linear regression model and find the value of the parameters for the estimation of mortzaee rates and the median home price. b) Interpret the intercept and the slope coefficient: c) State the comrelation coefficient and the coefficient of determination. Interpret the coefficient of determination

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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
a) Estimate a simple linear regression model and find the value of the parameters for the
estimation of morteaze rates and the median home price.
b) Interpret the intercept and the slope coefficient:
c) State the comelation coefficient and the coefficient of determination. Interpret the
coefficient of determination
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 a) Estimate a simple linear regression model and find the value of the parameters for the estimation of morteaze rates and the median home price. b) Interpret the intercept and the slope coefficient: c) State the comelation coefficient and the coefficient of determination. Interpret the coefficient of determination
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