What does given model predict for interest rate in year 2000

Assignment Help Basic Statistics

Reference no: EM131401405

Interest rates:

Here's a plot showing the federal rate on 3-month Treasury bills from 1950 to 1980, and a regression model fit to the relationship between the Rate (in %) and Years since 1950. (www.gpoaccess.gov/eop/)

216_Graph 008.jpg

a) What is the correlation between Rate and Year?

b) Interpret the slope and intercept.

c) What does this model predict for the interest rate in the year 2000?

d) Would you expect this prediction to have been accurate? Explain.

Reference no: EM131401405

Questions Cloud

Discuss about the network architecture : Using either the OSI Reference Model or the TCP/IP Protocol Suite, describe how each layer of the Model/Suite represents the communication flow between organizational levels and across departments/division of an actual hierarchical business. Be s..

What is the rate of free convection heat transfer : What is the rate of free convection heat transfer per unit surface area between the two plates if they are inclined at an angle of 60° from the horizontal?

Prepare a comprehensive best practices policy list : Design a comprehensive best practices policy list that includes policies on the following: Determine the key benefits of creating such policies. Provide a rationale for your response.

Define motivation using examples and anecdotes : you will write a definition essay post on the term motivation. In this essay post, you will define what it means to you to be motivated as a college student in a writing course. In your essay post, include challenges that you are facing with colle..

What does given model predict for interest rate in year 2000 : What is the correlation between Rate and Year?- Interpret the slope and intercept.- What does this model predict for the interest rate in the year 2000?

Were the leaks to the press by members of the board ethical : Were the leaks to the press by members of the board ethical? Was the investigation by Patricia Dunn into the links ethical? Consider the factors of utility, individual rights, and distributive justice discussed by Nair (2010) and Aswathappa (2010)..

Importance of production planning : Analyze the importance of production planning and scheduling within an organization. Evaluate a bad experience you have had with an appointment from both perspectives of the customer (you) and the organization due to inefficient planning and sched..

Predict the average age difference in 2015 : Predict the average age difference in 2015.- Describe reasons why you might not place much faith in that prediction.

Define business and identify potential risks in marketplace : Define business and identify potential risks and rewards in the marketplace today and looking out over the next few years.

User Account

All Pages