Question

Switching to the inference side of regression,
a. Show the 95% confidence interval estimate of the population intercept.
b. Show the 95% confidence interval estimate of the population slope.
c. Construct the appropriate hypothesis test to establish whether the coefficient for credit score in your estimated regression equation is statistically significant at the 5% significance level. Based on test results, what is your conclusion? Explain the implications of your conclusion.
Trenton Bank has a scoring system that it uses to evaluate new loan applications. You’ve been tracking the number of late or missed payments for a sample of “high risk” customers who received loans and have had scheduled payments over the past 60 months. The table below shows the number of late or missed payments and the credit scores for the four customers in the study.


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  • CreatedJuly 16, 2015
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