Mortgage Foreclosure Rate and Economic Indicators (n = 50 states, k = 7 predictors) 2007 Share of new Foreclosure mortgages that Rates (per 1,000) 100,000 people were subprime in Mass Layoff events per average home prices to median household income Foreclosure MassLayoff SubprimeShare 2.70 5.96 4.90 2.78 15.20 1.56 5.10 2.43 19.20 11.30 19.20 1.65 1.46 1.97 4.36 3.67 3.58 6.14 4.99 5.91 State Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware Florida Georgia Hawaii Idaho Illinois Indiana lova Kansas Kentucky Louisiana Maine Maryland Massachuse Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampsh New Jersey New Mexico New York North Carolin North Dakot. Ohio Oklahoma Oregon Pennsylvani Rhode Islan South Caroli South Dakot Tennessee Texas Utah Vermont Virginia Washington West Virgini Wisconsin Wyoming 8.30 2.70 20.00 15.70 2.00 6.10 12.50 10.30 3.10 2.00 2.70 2.00 0.40 8.30 6.60 19.50 5.10 1.10 9.10 2.70 4.70 33.80 2.10 9.00 3.60 4.90 7.40 0.80 18.00 5.20 5.40 3.00 4.10 2.20 0.10 9.80 9.40 8.50 0.10 5.10 5.70 0.50 4.90 1.50 6.43 3.31 8.16 2.49 3.04 2.28 1.98 9.42 3.83 2.74 5.60 5.12 1.80 5.26 2.36 5.79 2.79 3.80 1.03 3.44 6.24 1.91 6.88 9.50 5.10 4.02 1.38 2.52 1.80 1.63 8.69 1.84 2.92 1.05 12.50 0.96 28% 18% 26% 23% 25% 24% 23% 20% 30% 28% 19% 22% 29% 26% 22% 23% 24% 28% 22% 27% 19% 28% 23% 33% 27% 18% 22% 28% 20% 21% 22% 23% 22% 16% 26% 27% 22% 19% 27% 24% 18% 27% 29% 25% 15% 21% 22% 21% 21% 23% Home Ownership rates (%) 2005 PricelncomeRat Homeowners 4.04 5.54 6.79 3.68 9.54 6.68 6.52 6.07 7.30 4.55 8.92 5.01 6.51 4.15 4.01 4.38 4.68 3.92 4.86 6.91 6.43 4.95 5.24 3.93 4.92 5.95 4.65 5.66 6.75 7.03 5.23 6.31 4.57 4.30 4.83 4.32 6.52 5.11 6.68 4.93 4.53 4.37 4.20 5.20 4.77 8.38 6.58 4.34 4.83 5.06 76.6 66.0 71.1 69.2 59.7 71.0 70.5 75.8 72.4 67.9 59.8 74.2 70.9 75.0 73.9 69.5 71.6 72.5 73.9 71.2 63.4 76.4 76.5 78.8 72.3 70.4 70.2 63.4 74.0 70.1 71.4 55.9 70.9 68.5 73.3 72.9 68.2 73.3 63.1 73.9 68.4 72.4 65.9 73.9 74.2 71.2 67.6 81.3 71.1 72.8 Period Ended Dec 06 Average 5Yr home price 5YrApp UnempChange Hous Moved 0.448 0.426 0.383 0.419 0.361 0.376 0.406 0.448 0.348 0.38 0.474 32.51 53.91 96.55 32.62 105.80 22.24 57.96 70.83 106.90 28.02 108.52 61.54 42.36 16.98 23.59 24.64 24.62 41.22 59.60 99.86 48.75 16.15 41.91 31.12 33.11 62.15 20.31 99.35 54.10 78.52 55.63 67.34 30.90 39.15 16.53 26.00 68.91 55.32 83.08 33.86 33.65 30.32 24.18 43.93 63.02 80.60 66.13 35.82 2007 % of housing that Unemployment rate was moved into in percent change 2000-2005 36.37 62.56 0.00% -4.62% -7.32% 1.89% 10.20% -11.63% 4.55% -2.86% 17.65% -4.35% 4.00% -15.63% 8.70% -8.16% 0.00% -4.65% -5.17% -2.56% 2.17% -5.26% -6.25% 4.35% 15.00% -5.97% 4.17% -6.06% 0.00% 14.29% 2.86% -10.64% -18.60% -2.17% 0.00% 0.00% 3.70% 4.88% -3.70% -4.35% -1.96% -7.81% -3.23% -7.84% -12.24% -10.00% 5.41% 0.00% -8.16% -2.13% 4.26% -9.09% 0.413 0.39 0.393 0.442 0.475 0.449 0.494 0.528 0.407 0.411 0.353 0.422 0.5 0.399 0.45 0.432 0.335 0.472 0.401 0.441 0.426 0.411 0.502 0.378 0.418 0.414 0.448 0.441 0.462 0.548 0.396 0.398 0.404 0.587 0.422 0.414 0.502 0.428 0.498
Mortgage Foreclosure Rate and Economic Indicators (n = 50 states, k = 7 predictors) 2007 Share of new Foreclosure mortgages that Rates (per 1,000) 100,000 people were subprime in Mass Layoff events per average home prices to median household income Foreclosure MassLayoff SubprimeShare 2.70 5.96 4.90 2.78 15.20 1.56 5.10 2.43 19.20 11.30 19.20 1.65 1.46 1.97 4.36 3.67 3.58 6.14 4.99 5.91 State Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware Florida Georgia Hawaii Idaho Illinois Indiana lova Kansas Kentucky Louisiana Maine Maryland Massachuse Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampsh New Jersey New Mexico New York North Carolin North Dakot. Ohio Oklahoma Oregon Pennsylvani Rhode Islan South Caroli South Dakot Tennessee Texas Utah Vermont Virginia Washington West Virgini Wisconsin Wyoming 8.30 2.70 20.00 15.70 2.00 6.10 12.50 10.30 3.10 2.00 2.70 2.00 0.40 8.30 6.60 19.50 5.10 1.10 9.10 2.70 4.70 33.80 2.10 9.00 3.60 4.90 7.40 0.80 18.00 5.20 5.40 3.00 4.10 2.20 0.10 9.80 9.40 8.50 0.10 5.10 5.70 0.50 4.90 1.50 6.43 3.31 8.16 2.49 3.04 2.28 1.98 9.42 3.83 2.74 5.60 5.12 1.80 5.26 2.36 5.79 2.79 3.80 1.03 3.44 6.24 1.91 6.88 9.50 5.10 4.02 1.38 2.52 1.80 1.63 8.69 1.84 2.92 1.05 12.50 0.96 28% 18% 26% 23% 25% 24% 23% 20% 30% 28% 19% 22% 29% 26% 22% 23% 24% 28% 22% 27% 19% 28% 23% 33% 27% 18% 22% 28% 20% 21% 22% 23% 22% 16% 26% 27% 22% 19% 27% 24% 18% 27% 29% 25% 15% 21% 22% 21% 21% 23% Home Ownership rates (%) 2005 PricelncomeRat Homeowners 4.04 5.54 6.79 3.68 9.54 6.68 6.52 6.07 7.30 4.55 8.92 5.01 6.51 4.15 4.01 4.38 4.68 3.92 4.86 6.91 6.43 4.95 5.24 3.93 4.92 5.95 4.65 5.66 6.75 7.03 5.23 6.31 4.57 4.30 4.83 4.32 6.52 5.11 6.68 4.93 4.53 4.37 4.20 5.20 4.77 8.38 6.58 4.34 4.83 5.06 76.6 66.0 71.1 69.2 59.7 71.0 70.5 75.8 72.4 67.9 59.8 74.2 70.9 75.0 73.9 69.5 71.6 72.5 73.9 71.2 63.4 76.4 76.5 78.8 72.3 70.4 70.2 63.4 74.0 70.1 71.4 55.9 70.9 68.5 73.3 72.9 68.2 73.3 63.1 73.9 68.4 72.4 65.9 73.9 74.2 71.2 67.6 81.3 71.1 72.8 Period Ended Dec 06 Average 5Yr home price 5YrApp UnempChange Hous Moved 0.448 0.426 0.383 0.419 0.361 0.376 0.406 0.448 0.348 0.38 0.474 32.51 53.91 96.55 32.62 105.80 22.24 57.96 70.83 106.90 28.02 108.52 61.54 42.36 16.98 23.59 24.64 24.62 41.22 59.60 99.86 48.75 16.15 41.91 31.12 33.11 62.15 20.31 99.35 54.10 78.52 55.63 67.34 30.90 39.15 16.53 26.00 68.91 55.32 83.08 33.86 33.65 30.32 24.18 43.93 63.02 80.60 66.13 35.82 2007 % of housing that Unemployment rate was moved into in percent change 2000-2005 36.37 62.56 0.00% -4.62% -7.32% 1.89% 10.20% -11.63% 4.55% -2.86% 17.65% -4.35% 4.00% -15.63% 8.70% -8.16% 0.00% -4.65% -5.17% -2.56% 2.17% -5.26% -6.25% 4.35% 15.00% -5.97% 4.17% -6.06% 0.00% 14.29% 2.86% -10.64% -18.60% -2.17% 0.00% 0.00% 3.70% 4.88% -3.70% -4.35% -1.96% -7.81% -3.23% -7.84% -12.24% -10.00% 5.41% 0.00% -8.16% -2.13% 4.26% -9.09% 0.413 0.39 0.393 0.442 0.475 0.449 0.494 0.528 0.407 0.411 0.353 0.422 0.5 0.399 0.45 0.432 0.335 0.472 0.401 0.441 0.426 0.411 0.502 0.378 0.418 0.414 0.448 0.441 0.462 0.548 0.396 0.398 0.404 0.587 0.422 0.414 0.502 0.428 0.498
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
Related questions
Question
What is the approximate prediction interval for Y using an alpha of 5%? (Round answer to 3 decimal places.)
Transcribed Image Text:Mortgage Foreclosure Rate and Economic Indicators (n = 50 states, k =7 predictors)
2007
Mass Layoff
Foreclosure events per
Rates (per 1,000) 100,000 people
Share of new
mortgages that
average home
prices to median
household income
were subprime in
Foreclosure
State
Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
lowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachuse
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampsh
New Jersey
New Mexico
New York
North Caroli
North Dakot:
Ohio
Oklahoma
Oregon
Pennsylvani
Rhode Islan
South Caroli
South Dakot
Tennessee
Texas
Utah
Vermont
Virginia
Washington
West Virgini
Wisconsin
Wyoming
2.70
4.90
15.20
5.10
19.20
19.20
8.30
2.70
20.00
15.70
2.00
6.10
12.50
10.30
3.10
2.00
2.70
2.00
0.40
8.30
6.60
19.50
5.10
1.10
9.10
2.70
4.70
33.80
2.10
9.00
3.60
4.90
7.40
0.80
18.00
5.20
5.40
3.00
4.10
2.20
0.10
9.80
9.40
8.50
0.10
5.10
5.70
0.50
4.90
1.50
MassLayoff SubprimeShare
5.96
2.78
1.56
2.43
11.30
1.65
1.46
1.97
4.36
3.67
3.58
6.14
4.99
5.91
6.43
3.31
8.16
2.49
3.04
2.28
1.98
9.42
3.83
2.74
5.60
5.12
1.80
5.26
2.36
5.79
2.79
3.80
1.03
3.44
6.24
1.91
6.88
9.50
5.10
4.02
1.38
2.52
1.80
1.63
8.69
1.84
2.92
1.05
12.50
0.96
28%
18%
26%
23%
25%
24%
23%
20%
30%
28%
19%
22%
29%
26%
22%
23%
24%
28%
22%
27%
19%
28%
23%
33%
27%
18%
22%
28%
20%
21%
22%
23%
22%
16%
26%
27%
22%
19%
27%
24%
18%
27%
29%
25%
15%
21%
22%
21%
21%
23%
PricelncomeRat
4.04
5.54
6.79
3.68
9.54
6.68
6.52
6.07
7.30
4.55
8.92
5.01
6.51
4.15
4.01
4.38
4.68
3.92
4.86
6.91
6.43
4.95
5.24
3.93
4.92
5.95
4.65
5.66
6.75
7.03
5.23
6.31
4.57
4.30
4.83
4.32
6.52
5.11
6.68
4.93
4.53
4.37
4.20
5.20
4.77
8.38
6.58
4.34
4.83
5.06
Home
Ownership rates
(%) 2005
Homeowners
76.6
66.0
71.1
69.2
59.7
71.0
70.5
75.8
72.4
67.9
59.8
74.2
70.9
75.0
73.9
69.5
71.6
72.5
73.9
71.2
63.4
76.4
76.5
78.8
72.3
70.4
70.2
63.4
74.0
70.1
71.4
55.9
70.9
68.5
73.3
72.9
68.2
73.3
63.1
73.9
68.4
72.4
65.9
73.9
74.2
71.2
67.6
81.3
71.1
72.8
Period Ended Dec
06 Average 5Yr
home price
96.55
32.62
105.80
22.24
57.96
70.83
106.90
28.02
108.52
61.54
42.36
16.98
23.59
24.64
24.62
41.22
59.60
99.86
5YrApp UnempChange %HousMoved
32.51
53.91
48.75
16.15
41.91
31.12
33.11
62.15
2007
Unemployment rate
percent change
20.31
99.35
54.10
78.52
55.63
67.34
30.90
39.15
16.53
26.00
68.91
55.32
83.08
33.86
33.65
30.32
24.18
43.93
63.02
80.60
66.13
35.82
36.37
62.56
0.00%
-4.62%
-7.32%
1.89%
10.20%
-11.63%
4.55%
-2.86%
17.65%
-4.35%
4.00%
-15.63%
8.70%
-8.16%
0.00%
-4.65%
-5.17%
-2.56%
2.17%
-5.26%
-6.25%
4.35%
15.00%
-5.97%
4.17%
-6.06%
0.00%
14.29%
2.86%
-10.64%
-18.60%
-2.17%
0.00%
0.00%
3.70%
4.88%
-3.70%
-4.35%
-1.96%
-7.81%
-3.23%
-7.84%
-12.24%
-10.00%
% of housing that
was moved into in
2000-2005
5.41%
0.00%
-8.16%
-2.13%
4.26%
-9.09%
0.448
0.426
0.383
0.419
0.361
0.376
0.406
0.448
0.348
0.38
0.474
0.413
0.39
0.393
0.442
0.475
0.449
0.494
0.528
0.407
0.411
0.353
0.422
0.5
0.399
0.45
0.432
0.335
0.472
0.401
0.441
0.426
0.411
0.502
0.378
0.418
0.414
0.448
0.441
0.462
0.548
0.396
0.398
0.404
0.587
0.422
0.414
0.502
0.428
0.498
Transcribed Image Text:Use the standard error to construct a approximate prediction interval for Y using an alpha of 5%. (Round
your answer to 3 decimal places.)
Prediction interval for Y: ŷ₁ ±
Based on the width of this prediction interval, would you say the predictions are good enough to have
practical value?
Yes
O No
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VIEWStep 3: Determine the predicted value and mean predicted values.
VIEWStep 4: Determine the prediction interval for Y using an alpha level of 5%.
VIEWStep 5: Determine the width of the prediction interval.
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