An Agent For A Real Estate Company In A Large City Would Like To Be Able To Predict The Monthly Rental Cost For Apartmen 1 (158.74 KiB) Viewed 21 times
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 = 248.9286 and b1 = 0.9593. Complete parts (a) through (d). 925 925 Monthly Rent ($) Size (Square Feet) 1,550 825 1,450 1,900 1,200 1,050 1,250 1,800 1,700 1,350 1,300 950 800 650 a. Determine the coefficient of determination, r?, and interpret its meaning. r2 = (Round to three decimal places as needed.) What is the meaning of r?? O A. ? measures the proportion of variation in monthly rent that cannot be explained by the variation in apartment size. B. ? measures the proportion of variation in apartment size that cannot be explained by the variation in monthly rent. OC. 12 measures the proportion of variation in apartment size that can be explained by the variation in monthly rent. D. 2 measures the proportion of variation in monthly rent that can be explained by the variation in apartment size. b. Determine the standard error of the estimate, Syx. Syx=(Round to three decimal places as needed.)
c. How useful is this model for predicting the monthly rent? O A. It is very useful for predicting the monthly rent because ? is close to 1. Syx does not indicate whether a regression model is useful. B. 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. 2 C. It is very useful for predicting the monthly rent because r’ is close to 1 and Syx is fairly small compared to the actual rents. O D. It is not very useful for predicting the monthly rent because r is close to 0 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. Whether parking is available to tenants B. The desirability of the apartment building's location C. Whether tenants are allowed to keep pets D. The presence or absence of carpeting in the apartment E. The condition of the apartment
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