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Regression Analysis

How would I compute a simple regression formula using the interest rates and number of housing starts provided below. Also, once I have computed the regression formula, how would answer the following questions???

What is the regression formula that you computed?

What would the approximate number of housing starts be at the following interest rates: 8.5%, 4.5%, 3.7%, 2.3%?

If you were the owner of a business in the housing construction sector and you knew interest rates were going to change; how could you use this information to make better decisions?

Housing Starts in Relation to Interest Rates

Interest Rate Housing Starts

11% 9,000

10% 10,000

9% 24,000

8% 40,000

7% 52,000

6% 65,000

5% 80,000

4% 100,000

3% 130,000

2% 135,000

The attached file is a small article on interest rates that should be used as a reference...

This website is suppose to help compute the regression formula: http://people.hofstra.edu/faculty/Stefan_Waner/newgraph/regressionframes.html

(Use the simple regression equation y = mx + b. NOTE: Enter percentages as .02, .03, .04, etc.)

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Solution Summary

What is the regression formula that you computed?

What would the approximate number of housing starts be at the following interest rates: 8.5%, 4.5%, 3.7%, 2.3%?

If you were the owner of a business in the housing construction sector and you knew interest rates were going to change; how could you use this information to make better decisions?

Housing Starts in Relation to Interest Rates

Interest Rate Housing Starts

11% 9,000

10% 10,000

9% 24,000

8% 40,000

7% 52,000

6% 65,000

5% 80,000

4% 100,000

3% 130,000

2% 135,000

The attached file is a small article on interest rates that should be used as a reference...

This website is suppose to help compute the regression formula: http://people.hofstra.edu/faculty/Stefan_Waner/newgraph/regressionframes.html

(Use the simple regression equation y = mx + b. NOTE: Enter percentages as .02, .03, .04, etc.)

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