Use the least-squares method to determine the regression coefficients b0 and b1
ID: 3313356 • Letter: U
Question
Use the least-squares method to determine the regression coefficients b0 and b1 B0= (Round to one decimal places as needed.)
B1= (Round to one decimal places as needed.)
Predict the mean monthly rent for an apartment that has 1,000 square feet. (Round to nearest cent as needed)
Two people are considering signing a lease for an apartment in this neighborhood. They are trying to decide between two apartments, one with 1,000 square feet and for a monthly rent of 1,275 and the other with 1,200 square feet for a monthly rent of 1,425. The apartment with _____ square feet is the better deal. Score: 1.14 of 4 pts 10, 4 (3 complete) HY Score: 26.74%, 3.48 of 13 pts 13.2.9-T Question Help An agent for a residential real estate company in a suburb located outside a major city has the business objective of developing more accurate estimates of the monthly rental cost for apartments. Toward the 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 8 one-bedroom apartments and the data are shown. Complete parts (a) through ( Monthly Rent (S) 875 1.450 825 1.600 1.000 900 1.750 1.400 Size (Square Feet) ”0 1,200 950 1,200 2,000 650 1,350 950 a. Construct a scatter plot. Choose the correct graph below.
Explanation / Answer
Line of Regression Y on X i.e Y = bo + b1 X
calculation procedure for regression
mean of X = X / n = 1337.5
mean of Y = Y / n = 925
(Xi - Mean)^2 = 1240000
(Yi - Mean)^2 = 935000
(Xi-Mean)*(Yi-Mean) = -8750
b1 = (Xi-Mean)*(Yi-Mean) / (Xi - Mean)^2
= -8750 / 1240000
= -0.00706
bo = Y / n - b1 * X / n
bo = 925 - -0.00706*1337.5 = 934.438
value of regression equation is, Y = bo + b1 X
Y'=934.438-0.00706* X
Y'=934.4-0.007* X
Predict the mean monthly rent for an apartment that has 1,000 square feet
Y'=934.4-0.007* (1000) = 927.4
bo = 934.4, b1 = 0
The apartment with 1,200 square feet is the better deal., sice the regression equation we received gives a close to 924.425 but we are gettig around 1200 ft
X Y (Xi - Mean)^2 (Yi - Mean)^2 (Xi-Mean)*(Yi-Mean) 875 900 213906.25 625 11562.5 1450 1200 12656.25 75625 30937.5 825 950 262656.25 625 -12812.5 1600 1200 68906.25 75625 72187.5 1900 200 316406.25 525625 -407812.5 900 650 191406.25 75625 120312.5 1750 1350 170156.25 180625 175312.5 1400 950 3906.25 625 1562.5Related Questions
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