Q Math 54 Collected Work Section 4.3 Collected Work Name: Total points: 10 1. Your FICO credit score is used to determine your creditworthiness. It is used to help determine whether your qualify for a mortgage or credit and is even used to determine insurance rates. FICO scores have a range of 300 to 850, with a higher score indicating a better credit history. The given data represent the interest rate (in percent) a bank would offer on a 36-month auto loan for various FICO scores. Credit Score 545 595 640 675 705 750 Interest Rate (percent) 18.982 17.967 12.218 8.612 6.680 5.150 a. Find the correlation coefficient between FICO score and interest rate on a 36-month auto loan. b. Determine whether there is a linear relation between FICO score and interest rate. c. Find the linear regression equation. d. Construct a residual plot to verify the model requirements of the least squares regression model (you can use statcrunch for this). e. Find and interpret the coefficient of determination, comment on the adequacy of the linear model. 1

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