Homework Help is Here – Start Your Trial Now!
Math
Statistics
The Bank of Canada is interested in studying the relationship between mortgage rates and median home prices. The data is provided below interest rate (%) Median home price S183,800 S183,200 S174,900 Year 10.30 10.30 10.10 1988 1989 1990 9.30 $173,500 $172,900 S173,200 S173,200 1991 1992 8.40 1993 7.30 8.40 7.90 1994 1995 $169,700 S174,500 S177,900 S188,100 1996 7.60 1997 7.60 1998 6.90 1999 7.40 $203,200 $230,200 $258,200 2000 8.10 2001 2002 2003 7.00 6.50 $309,800 $329,800 $431,000 5.80 5.80 5.80 2004 2005 $515,000 $537,000 $496,000 $352,000 2006 6.40 2007 6.30 6.00 2008 2009 5.00 $232,000 $291,700 $262,900 2010 4.70 2011 4.40 2012 3.60 $299,200 2013 4.00 $321,200 $373,500 $358,100 $382,500 $402,900 2014 4.10 2015 3.80 2016 3.60 2017 4.00 ) Estimate a simple linear regression model and find the value of the parameters for the estimation of mortgage rates and the median home price. ) Interpret the intercept and the slope coefficients ) State the correlation coefficient and the coefficient of determination. Interpret the coefficient of determination

The Bank of Canada is interested in studying the relationship between mortgage rates and median home prices. The data is provided below interest rate (%) Median home price S183,800 S183,200 S174,900 Year 10.30 10.30 10.10 1988 1989 1990 9.30 $173,500 $172,900 S173,200 S173,200 1991 1992 8.40 1993 7.30 8.40 7.90 1994 1995 $169,700 S174,500 S177,900 S188,100 1996 7.60 1997 7.60 1998 6.90 1999 7.40 $203,200 $230,200 $258,200 2000 8.10 2001 2002 2003 7.00 6.50 $309,800 $329,800 $431,000 5.80 5.80 5.80 2004 2005 $515,000 $537,000 $496,000 $352,000 2006 6.40 2007 6.30 6.00 2008 2009 5.00 $232,000 $291,700 $262,900 2010 4.70 2011 4.40 2012 3.60 $299,200 2013 4.00 $321,200 $373,500 $358,100 $382,500 $402,900 2014 4.10 2015 3.80 2016 3.60 2017 4.00 ) Estimate a simple linear regression model and find the value of the parameters for the estimation of mortgage rates and the median home price. ) Interpret the intercept and the slope coefficients ) State the correlation coefficient and the coefficient of determination. Interpret the coefficient of determination

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
See similar textbooks
icon
Related questions
Question
Practice Pack
The Bank of Canada is interested in studying the relationship between mortgage rates and median home prices. The data is provided below interest rate (%) 10.30 Year Median home price S183,800 $183,200 1988 1989 10.30 1990 10.10 $174,900 1991 9.30 S173,500 $172,900 $173,200 1992 8.40 1993 7.30 1994 8.40 $173,200 S169,700 S174,500 1995 7.90 1996 7.60 1997 7.60 $177,900 $188,100 S203,200 $230,200 $258,200 S309,800 1998 6.90 1999 7.40 2000 8.10 2001 7.00 2002 6.50 2003 5.80 $329,800 2004 5.80 $431,000 2005 2006 2007 $515,000 $537,000 $496,000 5.80 6.40 6.30 2008 6.00 $352,000 $232,000 $291,700 $262,900 2009 5.00 2010 4.70 2011 4.40 2012 2013 3.60 $299,200 4.00 $321,200 $373,500 $358,100 $382,500 $402,900 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 mortgage rates and the median home price. b) Interpret the intercept and the slope coefficients c) State the correlation coefficient and the coefficient of determination. Interpret the coefficient of determination 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.
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 interest rate (%) 10.30 Year Median home price S183,800 $183,200 1988 1989 10.30 1990 10.10 $174,900 1991 9.30 S173,500 $172,900 $173,200 1992 8.40 1993 7.30 1994 8.40 $173,200 S169,700 S174,500 1995 7.90 1996 7.60 1997 7.60 $177,900 $188,100 S203,200 $230,200 $258,200 S309,800 1998 6.90 1999 7.40 2000 8.10 2001 7.00 2002 6.50 2003 5.80 $329,800 2004 5.80 $431,000 2005 2006 2007 $515,000 $537,000 $496,000 5.80 6.40 6.30 2008 6.00 $352,000 $232,000 $291,700 $262,900 2009 5.00 2010 4.70 2011 4.40 2012 2013 3.60 $299,200 4.00 $321,200 $373,500 $358,100 $382,500 $402,900 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 mortgage rates and the median home price. b) Interpret the intercept and the slope coefficients c) State the correlation coefficient and the coefficient of determination. Interpret the coefficient of determination 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.
Expert Solution
video

Learn your way

Includes step-by-step video

steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
Probability and Statistics for Engineering and th…
Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning
Statistics for The Behavioral Sciences (MindTap C…
Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
Elementary Statistics: Picturing the World (7th E…
Elementary Statistics: Picturing the World (7th E…
Statistics
ISBN:
9780134683416
Author:
Ron Larson, Betsy Farber
Publisher:
PEARSON
The Basic Practice of Statistics
The Basic Practice of Statistics
Statistics
ISBN:
9781319042578
Author:
David S. Moore, William I. Notz, Michael A. Fligner
Publisher:
W. H. Freeman
Introduction to the Practice of Statistics
Introduction to the Practice of Statistics
Statistics
ISBN:
9781319013387
Author:
David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:
W. H. Freeman
SEE MORE TEXTBOOKS