Page 98 - Azerbaijan State University of Economics

A.Y.Abbasov: How U.S. government expansionary monetary policy helps to lower the
interest rates of mortgages

relationship between VACRATE and HOUSE should be negative as with the
decrease of vacant homes one should see increase in housing sales.

REGRESSION ANALYSIS

The initial model was regressed with the results as shown in the table below:

DEPENDENT VARIABLE: HOUSE R2=.902 N=30
INDEPENDENT COEFFICENT STUDENT T SIGNIFICANT OF T
VARIABLES
INTEREST 7,932.7952 1.073 .2934
EMPLOYMENT -7,276.0907 -2.478 .0203
GDP 0.6107 0.581 .5667
VACRATE -56,568.6821 -9.869 .0000
DURBIN WATSON= 1.52

The focus in this study is on the impact of INTEREST on HOUSE. The Durbin-

Watson statistic of 1.52 fell in the region which shows us that autocorrelation cannot

be concluded. The Durbin-Watson statistic informed us that autocorrelation is

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