Reference no: EM13957089
For this case, we will examine some hypothetical data concerning interest rates and the number of housing starts per month. A new "housing start" is counted when a contractor begins construction of a new private house.
Create a scatterplot with interest rates on the X-axis and the number of housing starts on the Y-axis. (For information about how to do this, use the Excel "Help" utility and enter "Scatterplot." Then I would like you to compute a simple regression formula using the interest rates and number of housing starts provided below. Use the regression calculator found at Waner (2007). Once you have found your regression formula, answer the following questions.
1. What is the regression equation that you computed? The equation should have the form Y = m*X + B, were Y is the number of starts, X is the interest rate expressed as a decimal (e.g., 5% = 0.05), and B is the regression constant. (B is the hypothetical value of Y when X = 0. It may or may not make any practical sense, depending on the nature of the problem.)
2. What would the approximate number of housing starts be at the following interest rates: 8.5%, 4.5%, 3.7%, 2.3%? These must be CALCULATED, using the regression equation found above. (HINTS: Do NOT simply "guess" values, based on the historical data given below. That's wrong. Don't use linear interpolation between the historical data values; that's also wrong. Round off estimates of starts to the nearest whole number. [A house-building project either starts in a given month, or it doesn't. Therefore, it makes no sense to talk about fractions of a start.])
3. If you were the owner of a business in the housing construction sector and you knew how interest rates were likely to change, how could you use this information to make better decisions?
Historical Data: Housing Starts in Relation to Interest Rates
Interest Rate* Housing Starts**
11% 9,000
10% 10,000
9% 24,000
8% 40,000
7% 52,000
6% 65,000
5% 80,000
4% 100,000
3% 130,000
2% 135,000
*HINT: Enter interest rates into the regression app as decimals; e.g., 0.11, not 11%. Don't use the "%" sign!
**ANOTHER HINT: Do NOT include commas when entering your data into the regression app. Example: enter 9000, NOT 9,000.
|
Idea behind linear regression
: What is the idea behind linear regression? What is it? Why do it? What are some limitations of linear regression?
|
|
What is the relation between these accelerations
: An object of mass m1 on a frictionless horizontal table is connected to an object of mass m2 through a very light pulley P1 and a light fixed pulley P2 as shown below. If a1 and a2 are the accelerations of m1 and m2, respectively, what is the relat..
|
|
No slang or curse words unless
: No slang or curse words unless you are quoting. Get help in the Writing Center and have your tutor initial your draft for credit which may help a borderline final grade.
|
|
Find the standard deviation for each distribution.
: Use the normal approximation of the binomial probability distribution to find the interval that contains 95.44% of that distribution.
|
|
Hypothetical data concerning interest rates
: For this case, we will examine some hypothetical data concerning interest rates and the number of housing starts per month. A new "housing start" is counted when a contractor begins construction of a new private house.
|
|
What is the probability you will get to use it for 7th game
: You hold a ticket for the seventh game. What is the probability that you will get to use it? .answer 0.2765
|
|
Approximate number of housing starts
: What would the approximate number of housing starts be at the following interest rates and lumber prices:
|
|
Calculate the total amount of expansion work
: If your typical intake of food is equivalent to 2500 nutritional calories (1 nutritional calorie = 4,184 J), what fraction of a day's energy consumption is this work by the lungs? [It's not this bad however, since the surroundings do work on the l..
|
|
Tone and discuss the development of the report
: Transmittal (stand-alone block business letter): The transmittal will be read in advance of the actual report. It should be professional in tone and discuss the development of the report (at the sender's request) and should touch on the general su..
|