Problem 5 (2 points). The different interest rates charged by some financial institutions may reflect how stringent their standards are for their loan appraisals: the lower the rate, the higher the standards, and hence, the lower the default rate. The data below were collected from a sample of eight financial companies selected at random. a/ Financial company 2 3 4 5 6 7 8 Interest rate (in %) x 7.0 6.6 6.0 8.5 8.0 7.5 6.5 7.0 Default rate (in 1000 loans) y 38 40 35 46 48 39 36 37 Find the least square regression line. b/ Perform the test H.: B, = 0, H.: B. = 0 (using a = 0.05) to determine whether there is enough evidence to infer that a linear dependence exists between interest rate (x) and default rate (y)