QUESTION 3. STATISTICS. An analyst in the real estate business is interested in the relationship between the cost of the monthly rent of an apartment and the size of an apartment, in big cities. She gathers data for apartment buildings in 12 cities in 12 different states. In each city, she gets the numbers for at least 5 different buildings and at least 40 apartments in each building. She reaches the following conclusion: the rental cost of a 2-bedroom apartment is 50% more than the rental cost of a 1-bedroom apartment, and the rental cost of a 3-bedroom apartment is 50% more than the rental cost of a 2-bedroom apartment. Based on the paragraph, what is the minimum number of apartments she collected data on? Do you think her sample was large enough to be statistically valid? Based on the paragraph, are there any apartments or apartment buildings that she would have excluded from her study?

MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
icon
Related questions
Question
100%
QUESTION 3. STATISTICS. An analyst in the real estate business is interested in the relationship
between the cost of the monthly rent of an apartment and the size of an apartment, in big cities. She
gathers data for apartment buildings in 12 cities in 12 different states. In each city, she gets the
numbers for at least 5 different buildings and at least 40 apartments in each building. She reaches the
following conclusion: the rental cost of a 2-bedroom apartment is 50% more than the rental cost of a
1-bedroom apartment, and the rental cost of a 3-bedroom apartment is 50% more than the rental
cost of a 2-bedroom apartment.
Based on the paragraph, what is the minimum number of apartments she collected data on?
Do you think her sample was large enough to be statistically valid?
Based on the paragraph, are there any apartments or apartment buildings that she would have excluded
from her study?
Do you see any bias in how she selected apartments for her study?
Based on the paragraph, is there a positive correlation, a negative correlation, or no correlation
between the number of bedrooms and the monthly rent?
If her conclusion is valid, and you are renting a 1-bedroom apartment for $800 per month, how much
rent would you expect to pay if you moved to a 3-bedroom apartment nearby?
Transcribed Image Text:QUESTION 3. STATISTICS. An analyst in the real estate business is interested in the relationship between the cost of the monthly rent of an apartment and the size of an apartment, in big cities. She gathers data for apartment buildings in 12 cities in 12 different states. In each city, she gets the numbers for at least 5 different buildings and at least 40 apartments in each building. She reaches the following conclusion: the rental cost of a 2-bedroom apartment is 50% more than the rental cost of a 1-bedroom apartment, and the rental cost of a 3-bedroom apartment is 50% more than the rental cost of a 2-bedroom apartment. Based on the paragraph, what is the minimum number of apartments she collected data on? Do you think her sample was large enough to be statistically valid? Based on the paragraph, are there any apartments or apartment buildings that she would have excluded from her study? Do you see any bias in how she selected apartments for her study? Based on the paragraph, is there a positive correlation, a negative correlation, or no correlation between the number of bedrooms and the monthly rent? If her conclusion is valid, and you are renting a 1-bedroom apartment for $800 per month, how much rent would you expect to pay if you moved to a 3-bedroom apartment nearby?
Expert Solution
steps

Step by step

Solved in 5 steps

Blurred answer
Similar questions
Recommended textbooks for you
MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
Probability and Statistics for Engineering and th…
Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning
Statistics for The Behavioral Sciences (MindTap C…
Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
Elementary Statistics: Picturing the World (7th E…
Elementary Statistics: Picturing the World (7th E…
Statistics
ISBN:
9780134683416
Author:
Ron Larson, Betsy Farber
Publisher:
PEARSON
The Basic Practice of Statistics
The Basic Practice of Statistics
Statistics
ISBN:
9781319042578
Author:
David S. Moore, William I. Notz, Michael A. Fligner
Publisher:
W. H. Freeman
Introduction to the Practice of Statistics
Introduction to the Practice of Statistics
Statistics
ISBN:
9781319013387
Author:
David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:
W. H. Freeman