i have math and excel assignment

Name: __________________________________

Lesson 16 Paper/Pencil Assignment – SU20

Complete the following activity. This assignment will be worth 50 points.

The 30-year fixed mortgage rates are plotted for January of each year from 2008 through 2018.

Reinitialize the independent variable on the graph below to start the data with a value of 0. To

make it easier, the following approximations for the data values from the scatterplot are given in

the table. Be sure to provide titles and scales in the table and on your scatterplot.

Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Percent 5.76% 5.05% 5.03% 4.76% 3.92% 3.41% 4.43% 3.67% 3.87% 4.15% 4.03%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

2006 2008 2010 2012 2014 2016 2018 2020

Ja nu

ar y

A PR

YEAR Source: http://www.freddiemac.com/pmms/pmms30.html

30 Year Fixed Mortgage Rates in January for 2006 through 2018

Name: ________________________________________

Draw a line of best fit on the graph you made. You might want to use a twist tie or piece of

string to try options before deciding on what you think is the line of best fit. Identify two

ordered pairs on your line and write the equation of your line. Show all work, starting with

your ordered pairs.

Equation of line of best fit: ________________________________

Use your equation to find each of the following:

1. Interpolate to find the value your equation gives you for July of 2012 (July would be ½

year). Explain how that compares to the given data.

2. Extrapolate to find the expected 30-year fixed mortgage for 2020. Explain if this is an

acceptable value, in your opinion.

3. Based on your linear model, when should the 30-year fixed mortgage rate be 0%?

Explain what you think about that result.