14 ( ) The following table lists the number of home improvement loans approved by a finance company, along with the loan interest rate a Develop a regression forecast model using the interest rate as the predictor (i e , independent) variable Is this a time series or a causal forecasting model Expl...

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14. (**) The following table lists the number of home improvement loans approved by a finance company,

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14. (**) The following table lists the number of home improvement loans approved by a finance company, along with the loan interest rate.

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a. Develop a regression forecast model using the interest rate as the predictor (i.e., independent) variable. Is this a time series or a causal forecasting model?
Explain.

b. How many loans should the bank expect to make if the interest rate is 10%? 6.5%? Do these results make sense?

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Introduction To Operations And Supply Chain Management

ISBN: 9780131791039

2nd Edition

Authors: Cecil C. Bozarth, Robert B. Handfield

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Question Posted: Oct 12, 2024 01:01 AM

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14. (**) The following table lists the number of home improvement loans approved by a finance company, along with the loan interest rate. a. Develop a regression forecast model using the interest...
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14. (**) The following table lists the number of home improvement loans approved by a finance company,

Question:

INTEREST MONTH RATE NUMBER OF LOANS 10 1234567 890 7% 20 5% 30 4% 35 8% 18 10% 15 6% 22 11% 15 9% 20 5% 27 12% 10

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Introduction To Operations And Supply Chain Management

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