An agent for a residential real estate company in a large city has the business objective of developing more accurate estimates of the monthly rental cost for apartments. Toward that goal, the agent would like to use the size of an apartment, as defined by square footage to predict the monthly rental cost. The agent selects a sample of 25 apartments in a particular residential neighborhood and collects the following data:     Size (square feet) Rent ($) 850 1950 1450 2600 1085 2200 1232 2500 718 1950 1485 2700 1136 2650 726 1935 700 1875 956 2150 1100 2400 1285 2650 1985 3300 1369 2800 1175 2400 1225 2450 1245 2100 1259 2700 1150 2200 896 2150 1361 2600 1040 2650 755 2200 1000 1800 1200 2750   Make a Normal Probability Plot and a Residual plot of the Residuals (Y axis) vs. Apartment Size (X axis).  Based on these results, evaluate whether the assumptions of regression have been seriously violated.

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter10: Statistics
Section10.5: Comparing Sets Of Data
Problem 14PPS
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An agent for a residential real estate company in a large city has the business objective of developing more accurate estimates of the monthly rental cost for apartments. Toward that goal, the agent would like to use the size of an apartment, as defined by square footage to predict the monthly rental cost. The agent selects a sample of 25 apartments in a particular residential neighborhood and collects the following data:

 

 

Size (square feet)

Rent ($)

850

1950

1450

2600

1085

2200

1232

2500

718

1950

1485

2700

1136

2650

726

1935

700

1875

956

2150

1100

2400

1285

2650

1985

3300

1369

2800

1175

2400

1225

2450

1245

2100

1259

2700

1150

2200

896

2150

1361

2600

1040

2650

755

2200

1000

1800

1200

2750

 

Make a Normal Probability Plot and a Residual plot of the Residuals (Y axis) vs. Apartment Size (X axis).  Based on these results, evaluate whether the assumptions of regression have been seriously violated.

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