Cape May Realty manages rental beach properties during the summer season for pro

Question

Cape May Realty manages rental beach properties during the summer season for property owners. They would like to determine if a relationship exists between the square footage of beach property and the weekly rental rates during the summer season. Simple regression analysis was performed using a random sample of beach properties with the results shown below.

A) According to these regression results, the average weekly rental for a property that is 2,000 square feet is ________.

B) The percentage of the variation in weekly rental that is explained by the square footage of the property is ________.

SUMMARY OUTPUT Regression Statistics Multiple R R Square Adjusted R Square Standard Error Observations 0.4738 0.2245 0.1599 298.0757 14 ANOVA F Significance F 0.0870 MS Regression Residual Total 3.47 12 13 308653.62 308653.62 1066189.23 88849.10 1374842.86 Lower 95% P-value 359.6186 2.2721 0.0423 0.1760 1.8638 0.0870 ficients standard Error t Stat U per 95% 33.553 1600.636 -0.055 Intercept 817.0948 uare Feet 0.3280

Explanation / Answer

A)

As

Weekly Rental = 817.0948 + 0.3280*Square Feet

As Square Feet = 2000

Then

Weekly Rental = 817.0948 + 0.3280*2000 = 1473.0948 [ANSWER]

***********************

b)

As

r^2 = 0.2245

Then

The percentage of the variation in weekly rental that is explained by the square footage of the property is 22.45%. [ANSWER]

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