Jersey Shore Realtors would like to develop a regression model to help it set weekly rental rates for beach properties during the summer season in New Jersey. The independent variables for this model are the number of bedrooms a property has, its age in years, and the number of blocks away from the ocean the property is. The data for randomly selected rental properties can be found in the Excel file Jersey Shore Realtors 1.xlsx.
a. Construct a regression model using all three independent variables.
b. Interpret the meaning of the regression coefficients.
c. Predict the average weekly rental rate for a four bedroom house that is 15 years old and three blocks from the ocean.
d. Construct a 95% confidence interval for the average weekly rental rate for a house described in part c. Interpret the meaning of the interval.
e. Construct a 95% prediction interval for the weekly rental rate for a house described in part c. Interpret the meaning of the interval.