Find and interpret the correlation coefficient

Reference no: EM131189284

Consumer Credit The total amount of consumer credit has been increasing steadily in recent years. The following table gives the total U.S. outstanding consumer credit. Source: Federal Reserve.

Year

2004

2005

2006

2007

2008

Consumercredit (in billions

of dollars)

2219.5

2319.8

2415.0

2551.9

2592.1

a. Find an equation for the least squares line, letting x equal the number of years since 2000.

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

c. Use your result from part a to predict the amount of consumer credit in the year 2015.

d. If this trend continues linearly, in what year will the total debt ?rst exceed $4000 billion?

e. Find and interpret the correlation coefficient.

Reference no: EM131189284

Questions Cloud

How might you apply content to a classroom and instruction : What are at least five key points in the articles and the text readings? Based upon your experience in education, how might you apply this content to a classroom and instruction?

What markers will let teachers know they are making progress : Considering the bleak prognoses for many students with EBD, why should teachers spend time working with, and teaching, students with EBD? What markers will let teachers know they are making progress?

What is the value of each cash flow stream : Uneven Cash Flow Stream Find the present values of the following cash flow streams. The appropriate interest rate is 6%. Round your answers to the nearest cent. (Hint: It is fairly easy to work this problem dealing with the individual cash flows. Wha..

Recycle paper to save the environment : Write a report on the working Title "Recycle paper to save the enviroment"

Find and interpret the correlation coefficient : If this trend continues linearly, in what year will the total debt ?rst exceed $4000 billion?

What effect might it have on the ibs of the uk firms : Why is classical liberalism back in the United Kingdom? What are some of the formal and informal institutional and cultural effects of this discussion? What effect might it have on the IBS of the UK firms?

Compute the current price of the bond : A $1000 face value bond was issued at par 20 years ago with 6% coupon paid semiannually. The bond now has seven years remaining to maturity and similar debt obligations are yielding 12%. Compute the current price of the bond. Assumign that the bond i..

How does health care organization implement a strategic plan : How does a health care organization implement a strategic plan? What guidelines should be followed? at is Health Services Research? What are the overall goals of health system research?

Calculate expected return-variance and standard deviation : Given the data below, calculate the expected return, variance, and standard deviation of the following company. In a recessionary economy, which is expected to occur with 30% probability, the expected return would be -10%. In an expanding economy wit..

User Account

All Pages