The Equation for a (Deterministic) Straight Line Is $y = \beta _ { 0 } + \beta _ { 1 } x$

question 70

Essay

The equation for a (deterministic) straight line is $y = \beta _ { 0 } + \beta _ { 1 } x$ . If the line passes through the points $( 7,6 )$ and $( 5,4 )$ , find the values of $\beta _ { 0 }$ and $\beta _ { 1 }$ , respectively.

---

Definitions:

Credit Crisis

A financial situation characterized by a severe shortage of credit or loans, often resulting in widespread financial and economic instability.

Special Purpose Vehicles

Entities created for a specific financial transaction or to isolate financial risk, used in securitizations and project finance.

Asset Securitization

The process of pooling and repackaging of homogenous illiquid financial assets into securities that can be sold to investors.

Credit Enhancements

Strategies or financial products used to improve the credit worthiness of a financial transaction, reducing the risk for investors.