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Consider the regression output below. A description, and some summary statistics, of the variables are included below. What is the interpretation of the intercept? Select
Consider the regression output below. A description, and some summary statistics, of the variables are included below. What is the interpretation of the intercept? Select the best answer. SUMMARY OUTPUT Regression Statistics Multiple R 0.872604163 R Square 0.761438026 Adjusted R Square 0.754621969 Standard Error 1.677688188 Observations 73 ANOVA df SS MS F Significance F Regression 2 628.85986 314.42993 111.7124009 1.64453E-22 Residual 70 197.0246359 2.814637655 Total 72 825.8844959 Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Intercept -3.693024917 0.880931265 -4.192182821 7.95046E-05 -5.449986925 -1.936062908 Unemployment Rate (%) 1.497122617 0.128889776 11.61552659 5.47599E-18 1.240060065 1.754185169 House Price (% Change) -0.076961715 0.033773862 -2.278735994 0.025736599 -0.144321559 -0.009601871 Note: The Y variable is: Mortgage Delinquency Rate (9%) = the percentage of people with mortgages who are not making payments. The X variables are: Unemployment Rate (%) = the percentage of the labour force which currently does not have a job. House Price (% Change) = the percentage change in house prices from one year to the next. Summary Statistics: Mortgage Unemployment House Price (% Delinquency Rate (%) Rate (%) Change) Mean 5.10 6.08 3.96 Std. Dev. 3.39 1.78 6.78 Maximum 11.54 9.93 14.39 Minimum 1.41 3.80 -12.72 Select one:Intercept -3.693024917 0.880931265 -4.192182821 7.95046E-05 -5.449986925 -1.936062908 Unemployment Rate (%) 1.497122617 0.128889776 11.61552659 5.47599E-18 1.240060065 1.754185169 House Price (% Change) -0.076961715 0.033773862 -2.278735994 0.025736599 -0.144321559 -0.009601871 Note: The Y variable is: Mortgage Delinquency Rate (9%) = the percentage of people with mortgages who are not making payments. The X variables are: Unemployment Rate (9%) = the percentage of the labour force which currently does not have a job. House Price (% Change) = the percentage change in house prices from one year to the next. Summary Statistics: Mortgage Unemployment House Price (% Delinquency Rate (%) Rate (% ) Change) Mean 5.10 6.08 3.96 Std. Dev. 3.39 1.78 6.78 Maximum 11.54 9.93 14.39 Minimum 1.41 3.80 -12.72 Select one: O When the unemployment rate and the growth in house prices are at the mean values the average predicted mortgage delinquency rate is -3.69%. When the unemployment rate is zero and the growth in house prices is zero the average predicted mortgage delinquency rate is -3.69%. But this is not a sensible prediction because a zero rate of unemployment is well outside the range we observe in the data. O The average mortgage delinquency rate in our data is 3.69%. O When the unemployment rate is zero and the growth in house prices is zero the average predicted mortgage delinquency rate is 3.69%. But this is not a sensible prediction because a zero rate of unemployment is well outside the range we observe in the data.Consider the following regression equation: Mortgage Delinquency = -3.69 + 1.50 x ( Unemployment Rate ) - 0.08 ( House Price Change ) out of What is the predicted value of mortgage delinquency if: Unemployment rate = 10 question House Price Change = -10 (Report your answer to 2 decimal places and do not include units)
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