Question

Here's a plot showing the interest rate on a3-month bond from 1950 to 1980, and a regression model fit to the relationship between the Rate (in %) and Years since

1950. Complete parts a through d. a) What is the correlation between rate and year? b) Interpret the slope and intercept. c) What does this model predict for the interest rate in the year 2020? d) Would you expect this prediction to be accurate? Explain.

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