The data file to be used in this exercise is attached below. It covers 30-year mortgage interest rate (Rate, in %) and median home price (Price, in dollars) from 1985 through 2018. Price Rate 1/1/1985 84275 12.43 1/1/1986 92025 10.19 1/1/1987 104700 10.21 1/1/1988 112225 10.34 1/1/1989 120425 10.32 1/1/1990 122300 10.13 1/1/1991 119975 9.25 1/1/1992 121375 8.39 1/1/1993 126500 7.31 1/1/1994 130425 8.38 1/1/1995 133475 7.93 1/1/1996 140250 7.81 1/1/1997 145000 7.6 1/1/1998 151925 6.94 1/1/1999 160125 7.44 1/1/2000 167550 8.05 1/1/2001 173100 6.97 1/1/2002 186025 6.54 1/1/2003 192125 5.83 1/1/2004 218150 5.84 1/1/2005 236550 5.87 1/1/2006 243750 6.41

1/1/2007 244950 6.34 1/1/2008 229550 6.03 1/1/2009 215650 5.04 1/1/2010 222700 4.69 1/1/2011 224900 4.45 1/1/2012 244400 3.66 1/1/2013 266225 3.98 1/1/2014 285775 4.17 1/1/2015 294150 3.85

(a) Use the attached data file and draw a scatterplot with trendline by putting Median Home Price (in dollars) on the vertical axis and Mortgage Interest Rate (in %) on the horizontal axis. Submit your output and no explanation is needed. (b) Using the EXCEL regression package and run a simple linear regression analysis, using Median Home price as the dependent variable (y) and Mortgage Interest Rate as the independent variable (x). Submit your output. (c) simple sentence on the same worksheet as your regression output and explain, in the context of this case, the slope parameter estimate, b1, you obtained from regression. Focus on the sign and size of the estimate in your explanation. (d) Predict the home price, if the 30-year mortgage rate were 7%? [Note: This is basically a forecast/prediction of home price.] Part D is I need the most