Question

An economist wants to determine the relation between one’s FICO scores, x, and the interest rate...

An economist wants to determine the relation between one’s FICO scores, x, and the interest rate of a
36-month auto loan, y. Then given data represents the interest rate a bank would offer on a 36-month auto
loan for various FICO scores.
Credit Score 545
595
640
675
705
750
Interest Rate 18.982 17.967 12.219 5.612 6.680 5.150
a) Find the linear regression line when
r
=
−
0
.
940
, s
x
= 74
.
543 and
s
y
= 6
.
254.
b) Find the residual for the Credit score of 640 and interpret what the result means.
Math   Statistics-And-Probability   
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