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what should be the slope and intercept of the least squares regression of PRSM (y) versus the total amount to be repaid (x)? (b)
what should be the slope and intercept of the least squares regression of PRSM (y) versus the total amount to be repaid (x)? (b) For your data set, what is the slope and intercept of the least squares regression of PRSM (y) versus the total amount to be repaid (x)? Compare these estimates with the values of the slope and intercept anticipated in "a"? Explain any differences. (c) Use residuals to determine whether the data used to estimate the simple regression in "b" conform to the assumptions of the simple regression model (SRM). If the data do conform to the SRM, report and briefly interpret the value of R and RMSE. If the data are not consistent with the assumptions of the SRM, explain how the data deviate from those assumptions. (d) Does your analysis of the data indicate that loans with larger total amount to be repaid have smaller average PRSM (i.e., tend on average to underperform) compared to those with smaller principal?
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