A major national supplier of building materials for residential construction is concerned about total sales for next
Question:
a. Develop two regression models to predict residential investment, using the prime interest rate for one and the federal funds interest rate for the other. Analyze the regression statistics and indicate which equation provides the best predictions.
b. Determine the 95% confidence interval for the slope coefficient in both regression equations.
c. Based on each model, predict the effect of a twopercentage point increase in interest rates on residential investment.
d. Using both models, compute 95% confidence intervals for the change in residential investment that results from a two-percentage-point increase in interest rates.
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Related Book For
Statistics For Business And Economics
ISBN: 9780132745659
8th Edition
Authors: Paul Newbold, William Carlson, Betty Thorne
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