A bank records the number of mortgage applications and its own prevailing interest rate (at the first of the month) for each of 16 consecutive months. Is there a correlation between the interest rate (x) and the number of applicants (y), and if so, is it significant at the 5% or the 1% significance level?
A) -0.652, significant at 5%
B) -0.652, no significant correlation
C) -0.733, significant at 1%
D) -0.587, significant at 5%
E) -0.587, significant at 1%

Question

A bank records the number of mortgage applications and its own prevailing interest rate (at the first of the month) for each of 16 consecutive months. Is there a correlation between the interest rate (x) and the number of applicants (y), and if so, is it significant at the 5% or the 1% significance level? ​  ​  ​
A) -0.652, significant at 5% 
B) -0.652, no significant correlation 
C) -0.733, significant at 1% 
D) -0.587, significant at 5% 
E) -0.587, significant at 1%

Quizplus · Accepted Answer

The Answer of A bank records the number of mortgage applications and its own prevailing interest rate (at the first of the month) for each of 16 consecutive months. Is there a correlation between the interest rate (x) and the number of applicants (y), and if so, is it significant at the 5% or the 1% significance level? ​  ​  ​
A) -0.652, significant at 5% 
B) -0.652, no significant correlation 
C) -0.733, significant at 1% 
D) -0.587, significant at 5% 
E) -0.587, significant at 1%

A Bank Records the Number of Mortgage Applications and Its