{Exercise 16.3} Dataset: To determine how the number of housing starts is affect
ID: 3351969 • Letter: #
Question
{Exercise 16.3}
Dataset:
To determine how the number of housing starts is affected by mortgage rates an economist recorded the average mortgage rate and the number of housing starts in a large county for the past 10 years. These data are listed in dataset.
a) Determine the regression line (number of Starts = Rate).
bo = ______(to 2 decimals)
b1 = ______(to 1 decimal)
b) What do the coefficients of the regression line tell you about the relationship between mortgage rates and housing starts?
The slope coefficient tells us that for each additional 1 percentage point increase in mortgage rates, the number of housing starts _______ on average by ________(to 2 decimals).
Rate Starts 8.5 115 7.8 111 7.6 185 7.5 201 8.0 206 8.4 167 8.8 155 8.9 117 8.5 133 8.0 150Explanation / Answer
a)
y^ = 475.16666 -39.16666 * rate
b0 = 475.17 , b1 = -39.2
b)
The slope coefficient tells us that for each additional 1 percentage point increase in mortgage rates, the number of housing starts ____decrease ___ on average by 39.17
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SUMMARY OUTPUT Regression Statistics Multiple R 0.542950618 R Square 0.294795374 Adjusted R Square 0.206644795 Standard Error 31.47717427 Observations 10 ANOVA df SS MS F Significance F Regression 1 3313.5 3313.5 3.344225068 0.10484215 Residual 8 7926.5 990.8125 Total 9 11240 Coefficients Standard Error t Stat P-value Lower 95% Intercept 475.1666667 175.9053933 2.701262637 0.027021152 69.52810221 Rate -39.16666667 21.41750431 -1.82872225 0.10484215 -88.55552016Related Questions
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