An agent for a property management company would like to be able to predict the monthly rental cost for apartments based on the size of the apartment as defined by square footage. A sample of the rent of 25 apartments in a college rental neighborhood was selected, and the information collected revealed the following: Apartment Size (Sq. Ft.) Monthly Rent ($) 1 850 950 2 1,450 1,600 3 1,085 1,200 4 1,232 1,500 5 718 950 6 1,485 1,700 7 1,136 1,650 8 726 935 9 700 875 10 956 1,150 11 1,100 1,400 12 1,285 1,650 13 1,985 2,300 14 1,369 1,800 15 1,175 1,400 16 1,225 1,450 17 1,245 1,100 18 1,259 1,700 19 1,150 1,200 20 896 1,150 21 1,361 1,600 22 1,040 1,650 23 755 1,200 24 1,000 800 25 1,200 1,750 i) Determine a 95% interval estimate for the average rent of apartments with 1000 square feet. Determine ŷ1000 and interpret the interval estimate for the average rent completely…this has been done by Minitab, follow the notes. j) Predict the rent of an apartment with 1650 square feet. What is the S.D. of this estimate? ie: determine ŷ1650 and SE(ŷ1650)…SE is the same here as it was in part b. k) Determine the correlation coefficient ‘r’ and interpret its meaning.
An agent for a property management company would like to be able to predict the monthly rental cost for apartments based on the size of the apartment as defined by square footage. A sample of the rent of 25 apartments in a college rental neighborhood was selected, and the information collected revealed the following:
|
Apartment |
Size (Sq. Ft.) |
Monthly Rent ($) |
|
1 |
850 |
950 |
|
2 |
1,450 |
1,600 |
|
3 |
1,085 |
1,200 |
|
4 |
1,232 |
1,500 |
|
5 |
718 |
950 |
|
6 |
1,485 |
1,700 |
|
7 |
1,136 |
1,650 |
|
8 |
726 |
935 |
|
9 |
700 |
875 |
|
10 |
956 |
1,150 |
|
11 |
1,100 |
1,400 |
|
12 |
1,285 |
1,650 |
|
13 |
1,985 |
2,300 |
|
14 |
1,369 |
1,800 |
|
15 |
1,175 |
1,400 |
|
16 |
1,225 |
1,450 |
|
17 |
1,245 |
1,100 |
|
18 |
1,259 |
1,700 |
|
19 |
1,150 |
1,200 |
|
20 |
896 |
1,150 |
|
21 |
1,361 |
1,600 |
|
22 |
1,040 |
1,650 |
|
23 |
755 |
1,200 |
|
24 |
1,000 |
800 |
|
25 |
1,200 |
1,750 |
i) Determine a 95%
j) Predict the rent of an apartment with 1650 square feet. What is the S.D. of this estimate? ie: determine ŷ1650 and SE(ŷ1650)…SE is the same here as it was in part b.
k) Determine the
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 2 images
