nterest rates revisited In Exercise 35, you investigated the federal rate on 3-month Treasury bills between 1950 and 1980. The scatterplot below shows that the trend changed dramatically after 1980,...

nterest rates revisited In Exercise 35, you investigated the federal rate on 3-month Treasury bills between 1950 and 1980. The scatterplot below shows that the trend changed dramatically after 1980, so we computed a new regression model for the years 1980 to 2005.

a) How does this model compare to the one in Exercise 35?

b) What does this model estimate the interest rate was in 2000? How does this compare to the rate you predicted in Exercise 35?

c) Do you trust this newer predicted value? Explain.

 d) Given these two models, what would you predict the interest rate on 3-month Treasury bills will be in 2020?