|FRED Graph Observations Federal Reserve Economic Data|
|Economic Research Division Federal Reserve Banks of St. Louis|
You are the member of a local board who has been assisting low income families. Your organization has traditionally, rented properties in the community to make available to low income families, but because interest rates are so low, you have been pushing your organization to actually buy several homes. They are reluctant, so you must make your case that there has never been a better time to buy.
You have assembled the following data and will perform the following statistical analyses to make your case.
1. 1. Calculate the mean, median, mode, variance, standard deviation and skewness.
2. 2. Data has been kept on interest rates since the 1950s, so use the historic average here to construct a the 95% confidence interval. (I really need help with this question)
3. 3. How many standard deviations below the mean is the rate for 2014? (I really need help with this question)
4. 4. What is the trend in the data? (I really need help with this question)
5. 5. Using the data, predict what the interest rate is likely to be in 2015 and 2016 (I really need help with this question). Explain.
Prepare and explain your calculations. Use the evidence to write a paper to persuade the board that there never has been and it is likely that there never will be, a better time to finance the purchase of homes.