# Question: In Exercise you investigated the federal rate on 3 month Treasury

In Exercise you investigated the federal rate on 3-month Treasury bills between 1950 and 1980. The scatterplot below shows that the trend changed dramatically after 1980, so we’ve built a new regression model that includes only the data since 1980 (from x = 30 and on in the plot below).

a) How does this model compare to the one in Exercise?

b) What does this model estimate the interest rate to have been in 2000? How does this compare to the rate you predicted in Exercise 39?

c) Do you trust this newer predicted value? Explain.

d) Given these two models, what would you predict the interest rate on 3-month Treasury bills will be in 2020?

a) How does this model compare to the one in Exercise?

b) What does this model estimate the interest rate to have been in 2000? How does this compare to the rate you predicted in Exercise 39?

c) Do you trust this newer predicted value? Explain.

d) Given these two models, what would you predict the interest rate on 3-month Treasury bills will be in 2020?

**View Solution:**## Answer to relevant Questions

Has the trend of de-creasing difference in age at first marriage seen in Exercise gotten stronger recently? Here are the scatterplot and residual plot for the data from 1975 through 2011, along with a regression for just ...For each of the models listed below, predict y when x = 2. a. y-hat = 1.2 + 0.8 log x b. log y-hat = 1.2 + 0.8x c. y-hat = 1.2 + 0.8√x d. y-hat = 1.2 (0.8x) e. y-hat = 0.8x2 + 1.2x + 1 Here are prices for the external disk drives we saw in Chapter 15, exercise 10: The least squares line is Price = 15.11 + 62.417 capacity. The assumptions and conditions for regression are met. SE (b1) = 11.33 and se = ...The bookstore in Exercise decides to have a gala event in an attempt to drum up business. They hire 100 employees for the day and bring in a total of $ 42,000. a) Find the regression line predicting Sales from Number of ...Using the regression table in Exercise 14, answer the following questions. a) How was the t-ratio of 126.7 found for Paid Attendance? (Show what is computed using numbers found in the table.) b) How many weeks are included ...Post your question