An agent for a real estate company in a large city would like to be able...

 

Transcribed Image Text:

An agent for a real estate company in a large city 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 eight apartments in a neighborhood was selected, and the information gathered revealed the data shown below. For these data, the regression coefficients are bo = 293.5063 and b₁ =0.9326. Complete parts (a) through (d). Monthly Rent (S) Size (Square Feet) 950 1,600 800 1,500 2,000 925 1,800 1,400 - 850 1,350 950 1,150 2,000 650 1,250 1,050 a. Determine the coefficient of determination, 2, and interpret its meaning. 2= (Round to three decimal places as needed.) What is the meaning of r²? OA. 2 measures the proportion of variation in monthly rent that cannot be explained by the variation in apartment size. OB. 2 measures the proportion of variation in apartment size that cannot be explained by the variation in monthly rent. OC. 2 measures the proportion of variation in monthly rent that can be explained by the variation in apartment size. OD. 2 measures the proportion of variation in apartment size that can be explained by the variation in monthly rent. b. Determine the standard error of the estimate, Syx, and interpret its meaning. Syx (Round to three decimal places as needed.) What is the meaning of Syx? OA. Syx measures the amount by which an apartment's rent is less than the rent predicted by the regression equation. B. Syx measures the typical difference between an apartment's actual rent and the rent predicted by the regression equation. C. Syx measures the typical difference between an apartment's size and the size predicted by the regression equation. D. Syx measures the amount by which an apartment's rent is greater than the rent predicted by the regression equation, c. How useful is this model for predicting the monthly rent? OA. It is not very useful for predicting the monthly rent because although r is close to 1. Syx is fairly small compared to the actual rents. B. It is not very useful for predicting the monthly rent because ² is close to 0 and Syx is fairly small compared to the actual rents. C. It is very useful for predicting the monthly rent because ² is close to 1. Syx does not indicate whether a regression model is useful. D. It is very useful for predicting the monthly rent because is close to 1 and Syx is fairly small compared to the actual rents. d. What other variables might explain the variation in monthly rent? Select all that apply. A. The desirability of the apartment building's location B. Whether tenants are allowed to keep pets c. Whether parking is available to tenants D. The presence or absence of carpeting in the apartment E. The condition of the apartment An agent for a real estate company in a large city 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 eight apartments in a neighborhood was selected, and the information gathered revealed the data shown below. For these data, the regression coefficients are bo = 293.5063 and b₁ =0.9326. Complete parts (a) through (d). Monthly Rent (S) Size (Square Feet) 950 1,600 800 1,500 2,000 925 1,800 1,400 - 850 1,350 950 1,150 2,000 650 1,250 1,050 a. Determine the coefficient of determination, 2, and interpret its meaning. 2= (Round to three decimal places as needed.) What is the meaning of r²? OA. 2 measures the proportion of variation in monthly rent that cannot be explained by the variation in apartment size. OB. 2 measures the proportion of variation in apartment size that cannot be explained by the variation in monthly rent. OC. 2 measures the proportion of variation in monthly rent that can be explained by the variation in apartment size. OD. 2 measures the proportion of variation in apartment size that can be explained by the variation in monthly rent. b. Determine the standard error of the estimate, Syx, and interpret its meaning. Syx (Round to three decimal places as needed.) What is the meaning of Syx? OA. Syx measures the amount by which an apartment's rent is less than the rent predicted by the regression equation. B. Syx measures the typical difference between an apartment's actual rent and the rent predicted by the regression equation. C. Syx measures the typical difference between an apartment's size and the size predicted by the regression equation. D. Syx measures the amount by which an apartment's rent is greater than the rent predicted by the regression equation, c. How useful is this model for predicting the monthly rent? OA. It is not very useful for predicting the monthly rent because although r is close to 1. Syx is fairly small compared to the actual rents. B. It is not very useful for predicting the monthly rent because ² is close to 0 and Syx is fairly small compared to the actual rents. C. It is very useful for predicting the monthly rent because ² is close to 1. Syx does not indicate whether a regression model is useful. D. It is very useful for predicting the monthly rent because is close to 1 and Syx is fairly small compared to the actual rents. d. What other variables might explain the variation in monthly rent? Select all that apply. A. The desirability of the apartment building's location B. Whether tenants are allowed to keep pets c. Whether parking is available to tenants D. The presence or absence of carpeting in the apartment E. The condition of the apartment

Answer rating: 100% (QA)

we need to find the coefficient of detemination by using exel we have a r 2 0748 r 2 measures the pr... View the full answer