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An agent for a residential real estate company in a large city would like to be able to predict th

Question: 9 An agent for a residential real estate company in a large city 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 25 apartments (stored in the file rent.xls) in a particular residential neighborhood was selected, and the information gathered revealed the following:

Apartment	Monthly Rent ($)	Size (Square Feet)	Apartment	Monthly Rent ($)	Size (Square Feet)
1	950	850	14	1,800	1,369
2	1,600	1,450	15	1,400	1,175
3	1,200	1,085	16	1,450	1,225
4	1,500	1,232	17	1,100	1,245
5	950	718	18	1,700	1,259
6	1,700	1,485	19	1,200	1,150
7	1,650	1,136	20	1,150	896
8	935	726	21	1,600	1,361
9	875	700	22	1,650	1,040
10	1,150	956	23	1,200	755
11	1,400	1,100	24	800	1,000
12	1,650	1,285	25	1,750	1,200
13	2,300	1,985

a. Construct a scatter plot.

b. Use the least-squares method to find the regression coefficients b0 and b1.

c. Interpret the meaning of b0 and b1 in this problem.

d. Predict the mean monthly rent for an apartment that has 1,000 square feet.

e. Why would it not be appropriate to use the model to predict the monthly rent for apartments that have 500 square feet?

f. Your friends Jim and Jennifer are considering signing a lease for an apartment in this residential neighborhood. They are trying to decide between two apartments, one with 1,000 square feet for a monthly rent of $1,425. What would you recommend to them based on (a) through (d)? Why?

Price: $2.99

Solution: The downloadable solution consists of 4 pages
Deliverables: Word Document