Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The median home price and average mortgage rate in a certain country for 20062011 are given in following table. Year Median Price (in thousands of

The median home price and average mortgage rate in a certain country for 20062011 are given in following table.

Year Median Price (in thousands of dollars) Mortgage Rate (percent)
2006 221.9 6.58
2007 217.9 6.52
2008 196.6 6.15
2009 172.1 5.14
2010 173.1 4.89
2011 166.2 4.68

(b) Find the line of best fit. (Let x be in thousands of dollars. Round the coefficient of x to six decimal places and the constant to three decimal places.) = x + (c) Predict the average mortgage rate if the median price of a home is $200,000. (Round your answer to three decimal places.) % (d) Predict the median home price if the average mortgage rate is 5.25%. (Round your answer to the nearest thousand.) $ (e) Find the coefficient of correlation. (Round your answer to three decimal places.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

How To Get Out Of Debt And Into Praise

Authors: James T. Meeks

1st Edition

0802429939,1575678314

More Books

Students also viewed these Finance questions

Question

=+b. Draw Leandros new budget line.

Answered: 1 week ago