Consumer Debt: Bank credit card debt has risen steadily over the years.
The table gives debt per household in 1994 dollars.
Year (x) 1975 1980 1985 1990 1995
Debt (y) 270 650 1100 1800 3100
a. Plot the data. Does the graph show a linear pattern?
b. Find the equation of the least squares line and graph it on the same axes. Does the line appear to be a good fit?
c. Find and interpret the coefficient of correlation.
d. If this linear trend continues, when will household debt reach $3300?
Find the equation of the least squares line finds and interprets the coefficient of correlation.