Regression and Correlation An agent would like to predict the monthly rental cost for apartments, based on the size of the apartment, as defined by square footage. The agent selects a sample of 25 apartments in a particular residential neighborhood and gathers the data shown in the table. Size (Square feet) Rent (Dollars) 850 950 1450 1600 1085 1200 1232 1500 718 950 1485 1700 1136 1650 726 935 700 875 956 1150 1100 1400 1285 1650 1985 2300 1369 1800 1175 1400 1225 1450 1245 1100 1259 1700 1150 1200 896 1150 1361 1600 1040 1650 755 1200 1000 800 1200 1750 a) Find the correlation coefficient. Is it strong or weak? Positive or negative?
Run the Regression function from the Data Analysis tools and use the results to answer the following questions:
b) Find the equation of the regression line.
c) Find the slope, and interpret its meaning.
d) Compute the coefficient of determination, R Square, and interpret its meaning.
e) Compute the standard error of estimate, and interpret its meaning.