An agent for a residential real estate company in a large city would like to be able to predict the monthly rental cost of apartments based on the size of the apartment. Data for a sample of 25 apartments in a particular neighborhood are provided in the worksheet Apartments in the Excel workbook MATH302_Final.xls. At the .05 level of significance determine if the correlation between rental cost and apartment size is significant.
A. No, there is not a statistically significant linear relationship between monthly rental cost and apartment size, because the sample correlation coefficient is less than .95.
B. Yes, there is a statistically significant linear relationship between monthly rental cost and apartment size, because the p-value for this test is less than .0001.
C. Yes, there is a statistically significant linear relationship between monthly rental cost and apartment size, because the t-test value, 7.74, is greater than the critical value 1.96.
D. Yes, there is a statistically significant linear relationship between monthly rental cost and apartment size, because the sample correlation coefficient 0.85 exceeds 0.50.