Question
In: Statistics and Probability
An economist wants to determine the relation between one’s FICO score and interest rate of a...
An economist wants to determine the relation between one’s FICO score and interest rate of a 36-month auto loan. The data represent the interest rate (in percent) a bank might offer on a 36-month auto loan for various FICO scores. Credit Score, x: 550;600;640;670;700;750 Interest Rate, y: 19;18;12;8;6;5 a) Calculate the least regression line y=b0+b1x b) Calculate a 99% Confidence Interval about the slope of the least regression line c) Calculate a 99% Prediction Interval about the slope of the least regression line when x=650
Solutions
Expert Solution
The statistical software output for this problem is:
Hence,
a) Least square line:
y = 64.353 - 0.081 x
b) 99% confidence interval for slope:
(-0.1365, -0.0262)
c) 99% prediction interval:
(1.9526, 20.9853)
orchestra answered 2 years agoRelated Solutions
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