What factors influence how much people are willing to spend on a mortgage or rent payment? The

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What factors influence how much people are willing to spend on a mortgage or rent payment? The data set in Table 8.9 consists of a random sample of 20 residences and it contains measures of the monthly rent/mortgage payment, total household income, monthly utilities, the number in the household, total commute time, the number of vehicles, and the number of workers.

a. Draw a matrix plot that shows the relationship between the response and each of the predictor variables.

b. Use this data set to develop a linear model that can be used to predict which factors, if any, impact the amount spent on mortgage or rent payments \((\alpha=0.10)\).

c. Using exploratory plots and formal tests, check the regression model assumptions and comment on whether you believe these model assumptions appear to hold true.

d. Is the overall model useful in predicting the amount spent on mortgage or rent payments?

e. What variables impact the amount spent on mortgage or rent payments?

Table 8.9

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