Answer to Question #55205 in Statistics and Probability for jocelyn

Question

The correlation r= -0.86 the mean mortgage amount is $121.8 thousand and the mean interest rate is 7.74. the standard deviations are $47.36 thousand for mortgage amounts and 1.79% for interest rates
a) is the regression model appropriate for predicting mortgage amount from interest rates? explain
b) what is the equation that predicts mortgage amount from interest rates
c) what would you predict the mortgage amount would be if the interest rates climbed to 13%
d) do you have any reservations about your prediction in part C