An agent for a residential real estate company has the business objective of developing more accurate estimates of the monthly rental cost for apartments. Toward that 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 25 apartments in a particular residential neighborhood and collects the following data (stored in rent)
a. Construct a scatter plot.
b. Use the least-squares method to determine the regression coefficients b0 and b1
c. Interpret the meaning of b0 and b1 in this problem.
d. Predict the monthly rent for an apartment that has 1,000 square feet
| Rent |
Size |
| 950 |
850 |
| 1600 |
1450 |
| 1200 |
1085 |
| 1500 |
1232 |
| 950 |
718 |
| 1700 |
1485 |
| 1650 |
1136 |
| 935 |
726 |
| 875 |
700 |
| 1150 |
956 |
| 1400 |
1100 |
| 1650 |
1285 |
| 2300 |
1985 |
| 1800 |
1369 |
| 1400 |
1175 |
| 1450 |
1225 |
| 1100 |
1245 |
| 1700 |
1259 |
| 1200 |
1150 |
| 1150 |
896 |
| 1600 |
1361 |
| 1650 |
1040 |
| 1200 |
755 |
| 800 |
1000 |
| 1750 |
1200 |
