Heres a plot showing the federal rate on 3-month Treasury bills from 1950 to 1980, and a
Question:
a) What is the correlation between Rate and Year?
b) Interpret the slope and intercept.
c) What does this model predict for the interest rate in the year 2000?
d) Compute the Durbin-Watson statistic and comment.
e) Would you expect this prediction to have been accurate? Explain.
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Related Book For
Business Statistics
ISBN: 9780321925831
3rd Edition
Authors: Norean Sharpe, Richard Veaux, Paul Velleman
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