# Question: In Problem 12 9 on page 424 an agent for a

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.

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.

**View Solution:**## Answer to relevant Questions

Fitting a straight line to a set of data yields the following prediction line: Ŷi = 16 – 0.5 Xi a. Interpret the meaning of the Y intercept, b0. b. Interpret the meaning of the slope, b1. c. Predict the value of Y for X ...In Problem 12.7 on page 424 concerning the bag sealing equipment at Starbucks, you used the plate gap to predict the tear rating. a. Is it necessary to compute the Durbin Watson statistic in this case? Explain. b. Under ...You are testing the null hypothesis that there is no linear relationship between two variables, X and Y. From your sample of n = 18, you determine that b1 = + 4.5 and Sb1 = 1.5. a. What is the value of tSTAT? b. At the a = ...In Problem 12.10 on page 424, you used box office gross to predict DVD revenue. The data are stored in Movie . Use the results of that problem. a. At the 0.05 level of significance, is there evidence of a linear ...Based on a sample of n = 20, the least squares method was used to develop the following prediction line: ŷi = 5 + 3Xi. In addition, a. Construct a 95% confidence interval estimate of the population mean response for X = 4. ...Post your question