Question: Shown below are dollar figures for commercial and industrial loans at all commercial banks in the U.S. as recorded for the month of April during a recent 9-year period and published by the Federal Reserve Bank of St. Louis. Plot the data, fit a trend line, and discuss the strength of the regression model. In addition, explore a quadratic trend and compare the results of the two models.
|
Year
|
Loans ($ billions)
|
|
1
|
741.0
|
|
2
|
807.4
|
|
3
|
871.3
|
|
4
|
951.6
|
|
5
|
1033.6
|
|
6
|
1089.8
|
|
7
|
1002.6
|
|
8
|
940.8
|
|
9
|
888.5
|