The Bank of Canada is interested in studying the relationship between mortgage rates and median home prices. The data is provided below Year interest rate (%) Median home price 1988 10.30 $183,800 1989 10.30 $183,200 1990 10.10 $174,900 1991 9.30 $173,500 1992 8.40 $172,900 1993 7.30 $173,200 1994 8.40 $173,200 1995 7.90 $169,700 1996 7.60 $174,500 1997 7.60 $177,900 1998 6.90 $188,100 1999 7.40 $203,200 2000 8.10 $230,200 2001 7.00 $258,200 2002 6.50 $309,800 2003 5.80 $329,800 2004 5.80 $431,000 2005 5.80 $515,000 2006 6.40 $537,000 2007 6.30 $496,000 2008 6.00 $352,000 2009 5.00 $232,000 2010 4.70 $291,700 2011 4.40 $262,900 2012 3.60 $299,200 2013 4.00 $321,200 2014 4.10 $373,500 2015 3.80 $358,100 2016 3.60 $382,500 2017 4.00 $402,900 Estimate a simple linear regression model and find the value of the parameters for the estimation of mortgage rates and the median home (using Jasp. Interpret the intercept and the slope coefficients. State the correlation coefficient and the coefficient of determination. Interpret the coefficient of determination. Confirm the intercept, slope and correlation coefficient by computing them without SPSS At the 5% significance level, determine if the model is useful. In responding, construct and test any appropriate hypothesis.

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

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The Bank of Canada is interested in studying the relationship between mortgage rates and median home prices. The data is provided below

Year	interest rate (%)	Median home price
1988	10.30	$183,800
1989	10.30	$183,200
1990	10.10	$174,900
1991	9.30	$173,500
1992	8.40	$172,900
1993	7.30	$173,200
1994	8.40	$173,200
1995	7.90	$169,700
1996	7.60	$174,500
1997	7.60	$177,900
1998	6.90	$188,100
1999	7.40	$203,200
2000	8.10	$230,200
2001	7.00	$258,200
2002	6.50	$309,800
2003	5.80	$329,800
2004	5.80	$431,000
2005	5.80	$515,000
2006	6.40	$537,000
2007	6.30	$496,000
2008	6.00	$352,000
2009	5.00	$232,000
2010	4.70	$291,700
2011	4.40	$262,900
2012	3.60	$299,200
2013	4.00	$321,200
2014	4.10	$373,500
2015	3.80	$358,100
2016	3.60	$382,500
2017	4.00	$402,900

Estimate a simple linear regression model and find the value of the parameters for the estimation of mortgage rates and the median home (using Jasp. Interpret the intercept and the slope coefficients. State the correlation coefficient and the coefficient of determination. Interpret the coefficient of determination. Confirm the intercept, slope and correlation coefficient by computing them without SPSS

At the 5% significance level, determine if the model is useful. In responding, construct and test any appropriate hypothesis.

Definition Definition Middle value of a data set. The median divides a data set into two halves, and it also called the 50th percentile. The median is much less affected by outliers and skewed data than the mean. If the number of elements in a dataset is odd, then the middlemost element of the data arranged in ascending or descending order is the median. If the number of elements in the dataset is even, the average of the two central elements of the arranged data is the median of the set. For example, if a dataset has five items—12, 13, 21, 27, 31—the median is the third item in ascending order, or 21. If a dataset has six items—12, 13, 21, 27, 31, 33—the median is the average of the third (21) and fourth (27) items. It is calculated as follows: (21 + 27) / 2 = 24.

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