interest rate on car loan increased 50% over the last 10 years and is now 9%. what was the rate 10 years ago
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The table is a linear regression model, and the equation of the regression model is y = 0.24x + 0.77
<h3>The scatter plot that represents the table</h3>See attachment for the required scatter plot
<h3>The best model of the scatter plot</h3>From the attached scatter plot, we can see that the points are almost on a straight line
Hence, the best model that fits the scatter plot is a linear model
<h3>The equation of the regression model</h3>Using a graphing calculator, we have the following calculation summary:
- Sum of x = 28
- Sum of y = 12.1
- Mean X = 4
- Mean Y = 1.7286
- Sum of squares (SSX) = 28
- Sum of products (SP) = 6.7
- b = SP/SSX = 6.7/28 = 0.23929
- a = MY - bMX = 1.73 - (0.24*4) = 0.77143
The regression equation is represented as:
y = bx + a
So, we have:
y = 0.23929x + 0.77143
Approximate
y = 0.24x + 0.77
Hence, the equation of the regression model is y = 0.24x + 0.77
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