The following table gives the inflation rate and the corresponding prime lending rate for 7 different years Inflation Rate ( x ) Prime Lending Rate ( y ) 3 3 5 2 6 2 8 11 10 8 9 1 7 9 5 8 6 8 6 5 6 9 7 6 9 What is the predicted prime lending rate when the inflation rate stands at 6 What is the valu...

SOLUTION 1 Find the regression equation y a bx Using the formula b xxyyx ...

The following table gives the inflation rate and the corresponding prime lending rate for 7 different years.

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The following table gives the inflation rate and the corresponding prime lending rate for 7 different years.

Inflation Rate (x)	Prime Lending Rate (y)
3.3	5.2
6.2	8
11	10.8
9.1	7.9
5.8	6.8
6.5	6.9
7.6	9

What is the predicted prime lending rate when the inflation rate stands at 6%?

What is the value of the residual when the inflation rate is 5.8%?

Interpret the slope of the regression line for this situation.

An eager economist uses these data to predict that the prime lending rate would be 16.26 if the inflation rate rose to 20%. Comment on this prediction.

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Digital Systems Principles And Application

ISBN: 9780134220130

12th Edition

Authors: Ronald Tocci, Neal Widmer, Gregory Moss

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Posted Date: Nov 11, 2023 05:08 AM

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The following table gives the inflation rate and the corresponding prime lending rate for 7 different years.

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SOLUTION 1 Find the regression equation y a bx Using the formula b xxyyx... View the full answer

Digital Systems Principles And Application

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