Essentials of Business Analytics (MindTap Course List)
2nd Edition
ISBN: 9781305627734
Author: Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Publisher: Cengage Learning
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Textbook Question
Chapter 2, Problem 26P
The economic downturn in 2008–2009 resulted in the loss of jobs and an increase in delinquent loans for housing. In projecting where the real estate market was headed in the coming year, economists studied the relationship between the jobless rate and the percentage of delinquent loans. The expectation was that if the jobless rate continued to increase, there would also be an increase in the percentage of delinquent loans. The following data show the jobless rate and the delinquent loan percentage for 27 major real estate markets.
Source: The Wall Street Journal, January 27, 2009.
- a. Compute the
correlation coefficient . Is there apositive correlation between the jobless rate and the percentage of delinquent housing loans? What is your interpretation? - b. Show a
scatter diagram of the relationship between the jobless rate and the percentage of delinquent housing loans.
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The recent economic downturn resulted in the loss of jobs and an increase in delinquentloans for housing. In projecting where the real estate market was headed in the comingyear, economists studied the relationship between the jobless rate and the percentage ofdelinquent loans. The expectation was that if the jobless rate continued to increase, therewould also be an increase in the percentage of delinquent loans. The following data showthe jobless rate and the delinquent loan percentage for 27 major real estate markets.
a. Compute the correlation coefficient. Is there a positive correlation between the joblessrate and the percentage of delinquent housing loans? What is your interpretation?b. Show a scatter diagram of the relationship between the jobless rate and the percentage
In 2011, home prices and mortgage rates fell so far that in a number of cities the
monthly cost of owning a home was less expensive than renting. The following data
show the average asking rent and the monthly mortgage on the median-priced home
(including taxes and insurance) for 10 cities where the average monthly mortgage
payment was less than the average asking rent (The Wall Street Journal, November
26–27, 2011).
7.
City
Rent ($)
Mortgage ($)
Atlanta
840
539
1062
1002
Chicago
Detroit
823
626
DATA file
Jacksonville, Fla.
Las Vegas
779
711
796
655
RentMortgage
1071
953
Miami
977
Minneapolis
Orlando, Fla.
776
851
695
762
651
654
Phoenix
St. Louis
723
Develop a scatter diagram for these data, treating the average asking rent as the inde-
pendent variable. Does a simple linear regression model appear to be appropriate?
b. Use a simple linear regression model to develop an estimated regression equation to
predict the monthly mortgage on the median-priced home given the average asking…
In 2011 home prices and mortgage rates dropped so low that in a number of cities the monthly cost of owning a home was less expensive than renting. The following data show the average asking rent for 10 markets and the monthly mortgage on the median priced home (including taxes and insurance) for 10 cities where the average monthly mortgage payment was less than the average asking rent (The Wall Street Journal, November 26–27, 2011).Click on the datafile logo to reference the data.
Enter negative values as negative numbers.
a. Develop the estimated regression equation that can be used to predict the monthly mortgage given the average asking rent (to 2 decimals).The regression equation is:Mortgage ($) = + Rent ($)
Chapter 2 Solutions
Essentials of Business Analytics (MindTap Course List)
Ch. 2 - A Wall Street Journal subscriber survey asked 46...Ch. 2 - The following table contains a partial list of...Ch. 2 - Ohio Logistics manages the logistical activities...Ch. 2 - A partial relative frequency distribution is...Ch. 2 - In a recent report, the top five most-visited...Ch. 2 - In a study of how chief executive officers (CEOs)...Ch. 2 - Consumer complaints are frequently reported to the...Ch. 2 - Reports have found that many U.S. adults would...Ch. 2 - Consider the following data: a. Develop a...Ch. 2 - Consider the following frequency distribution....
Ch. 2 - The owner of an automobile repair shop studied the...Ch. 2 - Approximately 1.65 million high school students...Ch. 2 - Consider a sample with data values of 10, 20, 12,...Ch. 2 - Consider a sample with data values of 27, 25, 20,...Ch. 2 - Consider a sample with data values of 53, 55, 70,...Ch. 2 - If an asset declines in value from 5,000 to 3,500...Ch. 2 - Suppose that you initially invested 10,000 in the...Ch. 2 - The average time that Americans commute to work is...Ch. 2 - Suppose that the average waiting time for a...Ch. 2 - According to the National Education Association...Ch. 2 - Return to the waiting times given for the...Ch. 2 - The results of a national survey showed that on...Ch. 2 - Suppose that the national average for the math...Ch. 2 - Five observations taken for two variables follow....Ch. 2 - The scatter chart in the following figure was...Ch. 2 - The economic downturn in 20082009 resulted in the...Ch. 2 - Heavenly Chocolates manufactures and sells quality...
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