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Relationship between housing starts-mortgage interest rate

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Reference no: EM132849203

Relax mortgage has gathered following data to examine the relationship between housing starts and mortgage interest rate.

Interest rate Housing start

3.5 100
3.0 120
2.8 150
3.6 130
2.75 170
3.4 135
3.12 130
2.86 185
3.02 127
2.6 190
3.3 96

You are required to;

i. Derive the regression equation.

ii. Estimate the no of housing starts if mortgage interest rate is 2.5%

iii. Calculate and interpret the correlation between interest rate and no of housing starts.

Reference no: EM132849203

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