Compute Using: The data to the left, Microsoft Excel functions, or Data Analysis Toolpak, Regression

An agent for a residential real estate company in a large city would like to be able to predict the monthly

rental costs for apartments based on the size of the apartment, as defined by square footage. The agent

selects a sample of 25 apartments in a particular residential neighborhood.

1. Construct a scatter plot. .

2. Determine the regression coefficient, b0 and b1 (be sure to indicate the units for b0 and b1!!). State the regression equation.

3. Interpret the meaning of the slope, b1.

4. Predict the monthly rent for an apartment that has 1,000 square feet.

5. Determine the coefficient of determination, r2, and interpret its meaning.

6. Why would it be inappropriate to use this model to predict the monthly rent for an apartment that

is 500 square feet?

Rent Data
Rent	Size
950	850
1600	1450
1200	1085
1500	1232
950	718
1700	1485
1650	1136
935	726
875	700
1150	956
1400	1100
1650	1285
2300	1985
1800	1369
1400	1175
1450	1225
1100	1245
1700	1259
1200	1150
1150	896
1600	1361
1650	1040
1200	755
800	1000
1750	1200