8:15 ct |_-_{' 0D 0 (- Discussions _ $652.24 $543.91 : $497.37 $475.45 Sg For example, a 48 month loan for a car that you ' buy for $5,000, will cost you $276.59 per month. We now want to t a model to this data. In other words, we would like to know how to predict the monthly payment based on the loan term, as well as the loan amount. Questions: 1. Using what you know about multivariate linear functions, do your best to estimate a linear function for this data. ANSWERS WILL VARY! Yes, it will be "rough" in the sense that slopes are not constant, but make some judgment calls and decide on slopes in either direction. What do your slopes and the intercept mean in practical terms? 2. Use your model from Question 1 to estimate the payment for a 60-month loan of $8,000. How does your model estimate compare with the data in the table? What might be causing any discrepancies? ( Week 4: 9/14 to 9/20 ) Ill 0