Homework SourseSuppose a savings and loan association wants to forecast the
Suppose a savings and loan association wants to forecast the delinquency rate on home mortgages. Using monthly data, the following trend is estimated.
A. Does this estimate indicate a significant upward trend in the delinquency rate on home mortgages? In the space below, perform the appropriate t-test at the 5 percent significance level.
B.Perform an F-test to determine if the model is statiscally significant at the 5 percent level of significance.
C. Calculate the predicted delinquency rates for January 2014 and March 2014
DRJan 2014= ? percent
DR Mar 2014= ? percent
| Dependent Variable | DRT | R-SQUARE | F-RATIO | P-VALUE ON F |
| OBSERVATIONS | 48 | 0.7982 | 181.93 | .0001 |
| VARIABLE | PARAMETER ESTIMATE | STANDARD ERROR | T-RATIO | P-VALUE |
| INTERCEPT | 2.60 | 0.74 | 3.51 | 0.0010 |
| T | 0.030 | 0.010 | 3.00 | 0.0043 |
Solution
