# 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.Â Plot the data.Â Does the graph show a linear pattern?

b.Â Find the equation of the least squares line and graph it on the same axes.Â 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