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Week 2 Question (10 marks) Refer to the table below. Consider the relationship between the number of houses sold (V) and the mortgage rate (X).
Week 2 Question (10 marks) Refer to the table below. Consider the relationship between the number of houses sold (V) and the mortgage rate (X). The values of X and Y for twelve (12) months are shown in the table below. M-Rates Houses sold 8 188 9.5 145 7.5 11 181 137 8.5 157 10 148 10.5 140 7 7.5 11 203 188 144 9 150 8 166 Based on that, a. Calculate the coefficient of correlation between the number of houses sold and the mortgage rate. (6 marks) b. What does the correlation coefficient tell you about the relationship between the level of house sales and mortgage rates based on the calculation? (4 Marks)
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