For this case read the short article below concerning interest rates. Then I would like you to compute a simple regression formula using the interest rates and number of housing starts provided below. Once you have computed your regression formula 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?

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Solution: The downloadable solution consists of 5 pages, and 347 words
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