In Problem 12.9 on page 424, an agent for a real estate company wanted to predict the monthly rent for one bedroom apartments, based on the size of the apartments. Perform a residual analysis for these data (stored in RentSilverSpring ). Based on these results, evaluate whether the assumptions of regression have been seriously violated.
In problem 12.9
An agent for a residential real estate company in a suburb located outside of Washington, DC, 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 48 one bedroom apartments and collects and stores the data in RentSilverSpring.