A Set of Data Consists of the Number of Years $\hat { \mathrm { y } } = 31.6 + 10.9 \mathrm { x }$

question 43

Essay

A set of data consists of the number of years that applicants for foreign service jobs have studied German and the grades that they receive on a proficiency test. The following regression equation is obtained: $\hat { \mathrm { y } } = 31.6 + 10.9 \mathrm { x }$ , where $\mathrm { x }$ represents the number of years of study and $\mathrm { y }$ represents the grade on the test. Identify the predictor and response variables.

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Definitions:

Loanable Funds

The money available for borrowing in the financial markets, determined by the savings of individuals and institutions and the willingness to lend.

Interest Rate

The percentage at which interest is charged or paid on a sum of money over a period of time.

Loanable Funds

This refers to the total amount of funds available for borrowing in the financial markets, determined by the saving rate and investment demands.

Equilibrium Interest Rate

The rate of interest where the quantity of money sought equals the amount available, equilibrating investment and savings across the economy.