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 ago
Next > < Previous

Related Solutions

A Fair Isaac Corporation (FICO) score is used by credit agencies such as banks to determine...
A Fair Isaac Corporation (FICO) score is used by credit agencies such as banks to determine whether to lend money and the interest rate to charge. Its value ranges from 300 to 850 and if you have a score over 700, you are considered to be a "quality" credit risk. The mean credit score of average income earners in California is estimated by Fair Isaac to be 664. A recent survey of 47 high income earners in California had a...
A pediatrician wants to determine the relation that may exist between a? child's height and head...
A pediatrician wants to determine the relation that may exist between a? child's height and head circumference. She randomly selects 8 children from her? practice, measures their height and head? circumference, and obtains the data shown in the table. Complete parts? (a) through? (e) to the right. Height? (in.) Head Circumference? (in.) 27 17.4 25.5 17.2 26 17.2 25.75 17 27.75 17.5 26.5 17.2 26.25 17.2 26.75 17.4 LOADING... Click here to see the Table of Critical Values for Correlation...
A pediatrician wants to determine the relation that may exist between a​ child's height and head...
A pediatrician wants to determine the relation that may exist between a​ child's height and head circumference. She randomly selects 5 children and measures their height and head circumference. The data are summarized below. Complete parts​ (a) through​ (f) below. Height​ (inches), x 27.75 26.75 27 25 27.5 Head Circumference​ (inches), y 17.6 17.3 17.5 16.9 17.5 ​(a) Treating height as the explanatory​ variable, x, use technology to determine the estimates of beta 0 and beta 1. beta 0almost equalsb...
A pediatrician wants to determine the relation that may exist between a​ child's height and head...
A pediatrician wants to determine the relation that may exist between a​ child's height and head circumference. She randomly selects 5 children and measures their height and head circumference. The data are summarized below. A normal probability plot suggests that the residuals are normally distributed. Complete parts​ (a) and​ (b) below. Height_(inches)_-_x   Head Circumference_(inches)_-_y 27.75   17.6 27   17.5 27.5   17.5 25.5   17.1 25   16.9 ​(a) Use technology to determine sb1. sb1=__?__   ​(Round to four decimal places as​ needed.) ​(b) Test...
A pediatrician wants to determine the relation that may exist between a​ child's height and head...
A pediatrician wants to determine the relation that may exist between a​ child's height and head circumference. She randomly selects 5 children and measures their height and head circumference. The data are summarized below. Complete parts​ (a) through​ (f) below. Height​ (inches), x 25 27 26.5 27.5 25.5 Head Circumference​ (inches), y 16.9 17.5 17.3 17.5 17.1 (a) Treating height as the explanatory variable, X, use technology to determine the estimates of β0 and β1. β0 ≈b0 = ____ ​(Round...
A pediatrician wants to determine the relation that may exist between a​ child's height and head...
A pediatrician wants to determine the relation that may exist between a​ child's height and head circumference. She randomly selects 8 children from her​ practice, measures their height and head​ circumference, and obtains the data shown in the table. Complete parts​ (a) through​ (e) to the right. Height​ (in.) Head Circumference​ (in.) 27.75 17.4 25 17.1 26.25 17.3 25.75 17 27.5 17.4 26.25 17.2 26 17.1 26.75 17.4 LOADING... Click here to see the Table of Critical Values for Correlation...
A pediatrician wants to determine the relation that may exist between a child's height and head...
A pediatrician wants to determine the relation that may exist between a child's height and head circumference. She randomly selects five 3-year-old children from her practice, measures their height and head circumference and obtains the data shown in the table: height 27.75 24.5 25.5 26 25 head circumferences(in) 17.5 17.1 17.1 17.3 16.9 (a) if the pediatrician wants to use height to predict head circumference, determine which variable is the explanatory variable and which is the response variable: (b)Draw a...
A pediatrician wants to determine the relation that may exist between a​ child's height and head...
A pediatrician wants to determine the relation that may exist between a​ child's height and head circumference. She randomly selects 5 children and measures their height and head circumference. The data are summarized below. A normal probability plot suggests that the residuals are normally distributed. Complete parts​ (a) and​ (b) below. Height​ (inches), x 25 27.5 27 25.5 26 Head Circumference​ (inches), y 16.9 17.5 17.5 17.1 17.3 ​(a) Use technology to determine s Subscript b 1. s Subscript b...
A pediatrician wants to determine the relation that may exist between a​ child's height and head...
A pediatrician wants to determine the relation that may exist between a​ child's height and head circumference. She randomly selects 5 children and measures their height and head circumference. The data are summarized below. A normal probability plot suggests that the residuals are normally distributed. Complete parts​ (a) and​ (b) below. Height​ (inches), x 27.75 24.5 27.5 27 26.5 Head Circumference​ (inches), y 17.6 17.1 17.5 17.5 17.3 ​(a) Use technology to determine s Subscript b 1. s Subscript b...
A pediatrician wants to determine the relation that may exist between a child's height and head...
A pediatrician wants to determine the relation that may exist between a child's height and head circumference. She randomly selects 5 children and measures their height and head circumference. The data are summarized below. A normal probability plot suggests that the residuals are normally distributed. Complete parts (a) and (b) below. Height (inches), x 27 24.5 27.75 26.5 27.5 Head Circumference (inches), y 17.5 17.1 17.6 17.3 17.5 (a) Use technology to determine sb1 sb1= ______ (Round to four decimal...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT