Question

Stat 1102- Please answer each part of the question correctly!

A.) find an equation for the least squares line, letting x equal the number of years since 2001.

Bus Econ 1.3.14 Question Help The total amount of consumer credit has been increasing steadily in recent years. The following table gives the total outstanding consumer credit (in billions of dollars). Answer parts (a) through (e) below Consumer Credit 2557.5 2643.1 2759.0 2924.3 3097.2 Consumer Credit 2210.5 2350.8 2465.0 2517.9 2595.1 Year 2003 2004 2005 2006 2007 Year 2008 2009 2010 2011 2012

the equation is Y= ____ x +_____

B.) Based on the answer to part (a), at approximately what rate is consumer credit growing per year?

the consumer credit is growing $_____ billion per year

C.) Use the result from part (a) to predict the amount of consumer credit in the year 2016

the amount of consumer credit in the year 2016 will be $____ billion

D.) if this trend continues linearly, in what year will the total debt first exceed $4000 billion?

in the year _____, total debt will first exceed $4000 billion

E.) Find and interpret the correlation coefficient. Select the correct choice below and fill in the answer box to complete your choice.

option 1) the correlation coefficient is ____, which indicates a fairly strong linear correlation

option 2) the correlation coefficient is ____, which indicated there is no linear correlation.

Answer 1

(A) Y = 83.65 x + 2068.29
(B) $83.65
(C) $3323.04
(D) Year 2025
(E) the correlation coefficient is 0.966, which indicates a fairly strong linear correlation.

(The first 3 answers have been rounded to 2 decimal places and the last answer has been rounded to 3 decimal places)