- 4 An Economist Wants To Determine The Relation Between A Credit Score And The Interest Rate Of A 36 Mth Auto Loan Credi 1 (31.28 KiB) Viewed 36 times
4. An economist wants to determine the relation between a credit score and the interest rate of a 36-mth auto loan Credi
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4. An economist wants to determine the relation between a credit score and the interest rate of a 36-mth auto loan Credi
4. An economist wants to determine the relation between a credit score and the interest rate of a 36-mth auto loan Credit Score, Rate(%), y 545 18.982 595 17.967 640 12.218 675 8.612 705 6.680 750 5.150 Source: www.myfico.com a. Compute the least-squares regression line for interest rate (y) from credit score (X). Use words instead of x and y. b. Test Ho: 6, = 0 versus H: 6.0. Can you conclude that someone's credit score is useful in predicting their interest rate? Use the a=0.01 level of significance. Show all the steps of hypothesis testing, you can assume the assumptions for testing have been met.
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