T h e o b je c tiv e o u tlin e d in th e in tro d u c to ry case w a s to e v a lu a te th e in flu e n c e o f th e n u m b e r o f b e d ro o m s (B e d s ), th e n u m b e r o f b a th ro o m s (B a th s ), an d th e sq u a re fo o tage (S q ft) o n m o n th ly re n t (R e n t). U se th e A n n A r b o r re n ta l d a ta in T a b le 16.1 to a n s w e r th e fo llo w in g q u e s tio n s .

a. P lo t re n t a g a in s t e a ch o f th e th re e e x p la n a to ry v a ria b le s an d e v a lu a te w h e th e r th e re la tio n s h ip is b e st c a p tu re d b y a lin e o r a c u rv e . Id e n tify v a ria b le s th a t m a y re q u ire a lo g -tra n s fo rm a tio n .

b. E s tim a te th e lin e a r a n d th e re le v a n t lo g m o d e ls to p re d ic t re n t fo r a 1,6 0 0 -s q u a re -fo o t h o m e w ith th re e b e d ro o m s a nd tw o b a th ro o m s .