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The SPSS regression analysis estimating the impact of the size of mortgage rates on the numbers of loan applications gives the following results: Model Summary

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The SPSS regression analysis estimating the impact of the size of mortgage rates on the numbers of loan applications gives the following results: Model Summary R Adjusted R Std. Error of Model R Square Square the Estimate 1 972a 945 941 2.517 a. Predictors: (Constant), Mortgage rate % Coefficientsa Unstandardized Standardized 95.0% Confidence Coefficients Coefficients Interval for B Std. Lower Upper Model B Error Beta Sig. Bound Bound 1 (Constant) 153.399 5.770 26.585 .000 140.934 165.865 Mortgage -6.812 .456 -.972 .000 -7.797 -5.826 rate % 14.930 Next page 3 Question 2 (continued) Answer the following questions: a. What is the dependent variable, and what is the independent variable? (4 marks) b. What is the R2 of this regression? What do you conclude from it? (5 marks) c. Does the Mortgage rate have a significant coefficient? Why or why not? (5 marks) d. What hypothesis do the p-values in the Coefficients table test? (for the Constant and Mortgage rate coefficients) (6 marks) e. How do you interpret the coefficients of this regression? (10 marks)

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