13.3.21-T Question Help An agent for a real estate company in a large city would

Question

13.3.21-T Question Help An agent for a real estate company in a large city would like to be able to predict the monthly rental cost for apartments, based on the size of the apartment, as defined by square footage. A sample of eight apartments in a neighborhood was selected, and the information gathered revealed the data shown below. For these data, the regression coefficients are bo-316.0435 and b1 = 0.8766. Complete parts (a) through (d). Monthly Rent (S) 950 1.500 850 1.450 1.900 975 1750 1.350 Size (Square Feet) 750 1,350 1,050 1,250 1,900 750 1,350 950 a. Determine the coefficient of determination, r, and interpret its meaning. r2 (Round to four decimal places as needed.)

Explanation / Answer

The statistical software output for this problem is:

Simple linear regression results:
Dependent Variable: Size (Square Feet)
Independent Variable: Monthly Rent ($)
Size (Square Feet) = 21.876636 + 0.85547664 Monthly Rent ($)
Sample size: 8
R (correlation coefficient) = 0.86599726
R-sq = 0.74995125
Estimate of error standard deviation: 206.1438

Parameter estimates:

Analysis of variance table for regression model:

Hence,

a) r2 = 0.7500

b) Interpretation: 75% of the variation in monthly rent can be explained by the size.

Parameter Estimate Std. Err. Alternative DF T-Stat P-value Intercept 21.876636 280.00743 0 6 0.078128768 0.9403 Slope 0.85547664 0.20166399 0 6 4.2420892 0.0054

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.