A real estate company in downtown Miami 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 25 apartments in a particular residential neighborhood was chosen.

a. Construct a scatter plot of rent/size.

b. Find the equation of the least squares regression line that models the relationship between square footage and rental amount and interpret the meaning of the coefficients.

c. Predict the monthly rent for an apartment with 1000 square feet.

d. Explain why it would not be appropriate to use the model to predict the monthly rent for apartments that have 500 square feet.

e. You are considering signing a lease for an apartment in this residential neighborhood. You are deciding between two apartments, one with 1,000 square feet that rents for $1,275 and the other with 1,200 square feet that rents for $1,425. Which is a better deal? Explain.

Size (x)Rent (y)

850 .......................950

1450.....................1600

1085.....................1200

1232.....................1500

718........................950

1485.....................1700

1136......................1650

726..........................935

700..........................875

956.........................1150

1100.......................1400

1285.......................1650

1985........................2300

1369.........................1800

1175.........................1400

1225.........................1450

1245.........................1100

1259.........................1700

1150.....................1200

896.......................1150

1361.....................1600

1040.....................1650

755.......................1200

1000........................800

1200.....................1750