The dataset for this problem presents information about the annual average mortgage interest rates between 1980 and 2005 as well as the total amount of money borrowed for mortgages in each year. To the left is a scatter plot of the data considering Interest Rate (in percent) as an explanatory variable and Total Mortgages (in millions of $) as the response variable.

A. write the equation of the least squares regression line that predicts Total Mortgages (TM) from Interest Rate (IR).

??A.Which number in the regression equation is the slope? Interpret the slope in the context of the two variables.

B.Use the regression equation to predict the total amount of mortgages borrowed in a given year if the interest rate that year were 9 %. (NOTE: Remember, the variable Interest Rate is written in percent rather than decimal form, e.g., "15" means 15% and is not entered as 0.15)

C.There is one year where the average interest rate was indeed 9 % and the total amount of mortgages was $160.8 millions of dollars. What is the residual for that year?

D.Report the R² value and summarizing what the R² value says about the regression.

E.Examine a residual plot and determine if the use of a linear model is appropriate for the relationship between the variables.

Use the regression equation to predict the total amount of mortgages borrowed in a given year if the interest rate that year were 16 %.Explain why this is an example of

Interest Rate n Mortgages Total Mortgages (in millions of $3 160 140 120 6 8 10 12 14 Interest Rate (in percent)