A recent graduate moving to a new job collected a sample of monthly rent (dollars) and size (square feet) of 2 bedroom apartments in one area of a midwest city.

(a) Plot the scatter diagram and find the least squares fit of a straight line.
(b) Do these data substantiate the claim that the monthly rent increases with the size of the apartment? (Test with α = .05).
(c) Give a 95% confidence interval for the expected increase in rent for one additional square foot.
(d) Give a 95% prediction interval for the monthly rent of a specific apartment having 1025 square feet.

Transcribed Image Text:

Size Rent 1077 1475 1288 1670 842 1160 1210 1575 Size 1204 820 945 1192 Rent 1525 1245 1285 1435