Intro Stats, Books a la carte Plus NEW MyLab Statistics with Pearson eText -- Access Card Package (5th Edition)
5th Edition
ISBN: 9780134210247
Author: Richard D. De Veaux, Paul Velleman, David E. Bock
Publisher: PEARSON
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Chapter 6, Problem 40E
Interest rates and mortgages 2015 Since 1985, average mortgage interest rates have fluctuated from a low of nearly 3% to a high of over 14%. Is there a relationship between the amount of money people borrow and the interest rate that’s offered? Here is a
- a) Describe the relationship between Mortgage Loan Amount and Interest Rate.
- b) If we standardized both variables, what would the
correlation coefficient between the standardized variables be? - c) If we were to measure Mortgage Loan Amount in billions of dollars instead of trillions of dollars, how would the correlation coefficient change?
- d) Suppose that next year, interest rates were 11% and mortgages totaled $60 trillion. How would including that year with these data affect the correlation coefficient?
- e) Do these data provide proof that if mortgage rates are lowered, people will take out larger mortgages? Explain.
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Chapter 6 Solutions
Intro Stats, Books a la carte Plus NEW MyLab Statistics with Pearson eText -- Access Card Package (5th Edition)
Ch. 6.2 - Your statistics instructor tells you that the...Ch. 6.2 - Your statistics instructor tells you that the...Ch. 6.2 - Your statistics instructor tells you that the...Ch. 6.2 - Prob. 4JCCh. 6.2 - Prob. 5JCCh. 6 - Association Suppose you were to collect data for...Ch. 6 - Association II Suppose you were to collect data...Ch. 6 - Bookstore sales Consider the following data from a...Ch. 6 - Prob. 4ECh. 6 - Prob. 5E
Ch. 6 - Correlation facts II If we assume that the...Ch. 6 - Prob. 7ECh. 6 - Prob. 8ECh. 6 - Prob. 9ECh. 6 - Prob. 10ECh. 6 - Association III Suppose you were to collect data...Ch. 6 - Association IV Suppose you were to collect data...Ch. 6 - Prob. 13ECh. 6 - Prob. 14ECh. 6 - Prob. 15ECh. 6 - Prob. 16ECh. 6 - Firing pottery A ceramics factory can fire eight...Ch. 6 - Coffee sales Owners of a new coffee shop tracked...Ch. 6 - Matching Here are several scatterplots. The...Ch. 6 - Matching II Here are several scatterplots. The...Ch. 6 - Prob. 21ECh. 6 - Car thefts The National Insurance Crime Bureau...Ch. 6 - Prob. 23ECh. 6 - Antidepressants A study compared the effectiveness...Ch. 6 - Streams and hard water In a study of streams in...Ch. 6 - Traffic headaches A study of traffic delays in 68...Ch. 6 - Cold nights Is there an association between time...Ch. 6 - Association V A researcher investigating the...Ch. 6 - Prob. 29ECh. 6 - Prob. 30ECh. 6 - Correlation errors Your Economics instructor...Ch. 6 - More correlation errors Students in the Economics...Ch. 6 - Height and reading A researcher studies children...Ch. 6 - Prob. 34ECh. 6 - Correlation conclusions I The correlation between...Ch. 6 - Prob. 36ECh. 6 - Prob. 37ECh. 6 - Sample survey A polling organization is checking...Ch. 6 - Income and housing The Office of Federal Housing...Ch. 6 - Interest rates and mortgages 2015 Since 1985,...Ch. 6 - Fuel economy 2016 Here are engine size...Ch. 6 - Drug abuse A survey was conducted in the United...Ch. 6 - Prob. 43ECh. 6 - Burgers again In the previous exercise you...Ch. 6 - Prob. 45ECh. 6 - Second inning 2016 Perhaps fans are just more...Ch. 6 - Prob. 47ECh. 6 - Prob. 48ECh. 6 - Thrills 2013 Since 1994, the Best Roller Coaster...Ch. 6 - Thrills II For the roller coaster data in Exercise...Ch. 6 - Prob. 51ECh. 6 - Vehicle weights The Minnesota Department of...Ch. 6 - Prob. 53ECh. 6 - Flights 2016 Here are the number of domestic...
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