When buying a home, the interest rate given on a loan typically depends on the applicant’s credit score. The Fair Isaac Corporation (FICO) is a major producer of credit scores. The following table contains 10 randomly selected loan applicants along with their FICO scores and the interest rates that they were given when financing their homes.
FICO Score
Interest Rate
1
756
6.32
2
679
7.85
3
527
10.2
4
839
5.52
5
677
7.3
6
686
7.37
7
512
9.67
8
590
8.4
9
765
5.82
10
502
10.01
The linear correlation coefficient between FICO score and home loan interest rate is:
– 0.0144
0.9642
– 0.9819
0.1723