The Bank of Canada is interested in studying the relationship between mortgage rates and median home prices. The data is provided below Year interest rate (%) Median home price S183,800 $183,200 1988...


The Bank of Canada is interested in studying the relationship between mortgage rates and median<br>home prices. The data is provided below<br>Year<br>interest rate (%)<br>Median home price<br>S183,800<br>$183,200<br>1988<br>10.30<br>1989<br>10.30<br>1990<br>10.10<br>S174,900<br>1991<br>9.30<br>S173,500<br>1992<br>8.40<br>$172,900<br>1993<br>7.30<br>$173,200<br>1994<br>8.40<br>$173,200<br>S169,700<br>S174,500<br>Ineed<br>1995<br>7.90<br>1996<br>7.60<br>help with<br>1997<br>7.60<br>$177,900<br>1998<br>6.90<br>$188,100<br>1999<br>$203,200<br>$230,200<br>7.40<br>2000<br>8.10<br>parts<br>2001<br>7.00<br>$258,200<br>2002<br>2003<br>S309,800<br>$329,800<br>6.50<br>5.80<br>2004<br>5.80<br>$431,000<br>()<br>$515,000<br>$537,000<br>$496,000<br>2005<br>5.80<br>2006<br>6.40<br>2007<br>6.30<br>2008<br>6.00<br>$352,000<br>2009<br>5.00<br>$232,000<br>2010<br>$291,700<br>$262,900<br>$299,200<br>4.70<br>2011<br>4.40<br>2012<br>2013<br>3.60<br>4.00<br>$321,200<br>$373,500<br>$358,100<br>$382,500<br>$402,900<br>2014<br>4.10<br>2015<br>2016<br>3.80<br>3.60<br>4.00<br>2017<br>a) Estimate a simple linear regression model and find the value of the parameters for the<br>estimation of mortgage rates and the median home price.<br>b) Interpret the intercept and the slope coefficients<br>c) State the correlation coefficient and the coefficient of determination. Interpret the<br>coefficient of determination<br>d) Confirm the intercept, slope and correlation coefficient by computing them without SPSS<br>e) At the 5% significance level, determine if the model is useful. In responding, construct and<br>test any appropriate hypothesis.<br>

Extracted text: The Bank of Canada is interested in studying the relationship between mortgage rates and median home prices. The data is provided below Year interest rate (%) Median home price S183,800 $183,200 1988 10.30 1989 10.30 1990 10.10 S174,900 1991 9.30 S173,500 1992 8.40 $172,900 1993 7.30 $173,200 1994 8.40 $173,200 S169,700 S174,500 Ineed 1995 7.90 1996 7.60 help with 1997 7.60 $177,900 1998 6.90 $188,100 1999 $203,200 $230,200 7.40 2000 8.10 parts 2001 7.00 $258,200 2002 2003 S309,800 $329,800 6.50 5.80 2004 5.80 $431,000 () $515,000 $537,000 $496,000 2005 5.80 2006 6.40 2007 6.30 2008 6.00 $352,000 2009 5.00 $232,000 2010 $291,700 $262,900 $299,200 4.70 2011 4.40 2012 2013 3.60 4.00 $321,200 $373,500 $358,100 $382,500 $402,900 2014 4.10 2015 2016 3.80 3.60 4.00 2017 a) Estimate a simple linear regression model and find the value of the parameters for the estimation of mortgage rates and the median home price. b) Interpret the intercept and the slope coefficients c) State the correlation coefficient and the coefficient of determination. Interpret the coefficient of determination d) Confirm the intercept, slope and correlation coefficient by computing them without SPSS e) At the 5% significance level, determine if the model is useful. In responding, construct and test any appropriate hypothesis.

Jun 03, 2022
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