Correlation and Regression
Consumer Debt: Bank credit card debt has risen steadily over the years.
The table gives debt per household in 1994 dollars.
Year (x)Â Â Â Â Â Â 1975Â Â Â Â Â Â Â 1980Â Â Â Â Â 1985Â Â Â Â Â 1990Â Â Â Â Â 1995
Debt (y)Â Â Â Â Â 270Â Â Â Â Â Â 650Â Â Â 1100Â Â Â 1800Â Â Â 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?
https://brainmass.com/math/graphs-and-functions/correlation-regression-5196
Solution Summary
Find the equation of the least squares line finds and interprets the coefficient of correlation.
$2.19