An agent for a real estate company in a large city collected data on the sizes (

Question

An agent for a real estate company in a large city collected data on the sizes (x in square feet) and monthly rents (y in dollars) of a sample of eight apartments in a neighborhood. The data is shows below along with the linear regression equation. Complete parts a through c below.

= 113.2 + 1.079x

A. Estimate the mean monthly rent for an apartment that has 1,000 square feet.

     The mean monthly rent for such an apartment is approximately $____ (round to the nearest cent as needed).

B. Interpret the coefficients of b and b in this problem.

     A. For each increase of 1 square foot in space, the monthly rent is expected to increase by $1.079. Apartments in the neighborhood cost at least $113.2.

     B. For each increase of 1 square foot in space, the monthly rent is expected to increase by $1.079. Since X cannot be zero, 113.2 has no practical interpretation.

     C. For each increase of 1 square foot in space, the monthly rent is expected to increase by $113.2. Apartments in the neighborhood cost at least $1.079.

     D. For each increase in 1 square foot in space, the monthly rent is expected to increase by $113.2. Since X cannot be zero, 1.079 has not practical interpretation.

C. You have been asked to estimate the mean monthly rent for an apartment that has 2,500 square feet. Discuss how you would proceed and indicate your cautions. Select the correct   choice below and if necessary, fill in the answer box to complete your answer.

    A. The correlation between an apartment’s size and its monthly rent is too weak to use this model for such a prediction.

    B. It is not appropriate for the linear regression equation to estimate this value, because the value is outside the range of values given for the apartment size.

    C. It is not appropriate for the linear regression equation to estimate this value, because the value is greater than 2 standard deviations from the mean apartment size.

    D. The estimated mean monthly rent is _____ as long as b is greater than 0 (round to two decimal places as needed).

Monthly Rent ($) 950 1550 825 1600 1900 900 1700 1300 Size (square feet) 800 1300 900 1250 1800 700 1300 1050

Explanation / Answer

Answer..

(a)

Mean of monthly rent $2242.268

(b)

Option c is correct...

(c)

Option a is correct..

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