4. Use the table below to practice calculating a regression forecast:

Month	Interest Rate (%)(X)	# Loans(Y)
1	7	20
2	5	30
3	4	35
4	8	18
5	10	15
6	6	22
7	11	15
8	9	20
9	5	27
10	12	10

Part a: Develop a regression forecast model using interest rate as the predictor (independent) variable. Is this a time series or a causal forecasting model? Explain.

Part b: How many loans should the bank expect to make if the interest rate is 10%? 6,5%? Do the results make sense?