Realtors in a large Midwestern town wish to base rents on apartment size. In order to devise a principle upon which to determine rents they surveyed 150 rentals. Regressing rents on square footage produced these results.

a. You have a single apartment with 900 square feet. What is your 92% interval estimate of the rent you can charge?

b. The city Realtors Association has asked you to provide a 98%
interval estimate for apartments city-wide with 900 square feet.
What do you report to them?

Transcribed Image Text:

SS,- 2450 SS,= 8741 1748 "XY X- Y= 954 b- 874 b = S. = 0.7135 193.3502 7.1158