4.

(a) Develop a scatter diagram with home value as the independent variable. S i 25 900 900 g: . - s 300 - a 800 - B 20 _ - _ 8_ 700 8_ 700 g 15 - * {3' 600 ' _ L3 600 _ ' g: ' . u; 500 ' 0' 500 I a. g _ a . n 2 u . '53 10 ' g 400 . . ' g 40 ' . - u, - a 300 ' - a 300 - ' I I I a 5 E 200 - - E 200 - - g = 100 I: 100 E 0o 100 200 300 400 500 600 700 300 900 o 5 10 15 20 25 o 5 10 15 20 25 0 Home Value ($1,000) 0 Landscaping Expenditures (51,000) (D 0 Landscaping Expenditures (51,000) (D 8 8 .3 25 I (n E 20 _ . . . . . a 15 ' . I I 53 10 . ' En . ' 5 8* g o | l l | l I l | I E o 100 200 300 400 500 600 700 300 900 0 Home Value ($1,000) (b) What does the scatter plot developed in part (a) indicate about the relationship between the two variables? 0 The scatter diagram indicates a nonlinear relationship between home value and landscaping expenditures. 0 The scatter diagram indicates no apparent relationship between home value and landscaping expenditures. 0 The scatter diagram indicates a negative linear relationship between home value and landscaping expenditures. 0 The scatter diagram indicates a positive linear relationship between home value and landscaping expenditures. (c) Use the least squares method to develop the estimated regression equation. (Let x = home value (in thousands of $), and let y = landscaping expenditures (in thousands of 95). Round your numerical values to five decimal places.) f}: (d) For every additional $1,000 in home value, estimate how much additional will be spent (in $) on landscaping. (Round your answer to the nearest cent.) $:l (e) Use the equation estimated in part (c) to predict the landscaping expenditures (in $) for a home valued at $475,000. (Round your answer to the nearest dollar.) $:l A landscaping company has collected data on home values (in thousands of $) and expenditures (in thousands of $) on landscaping with the hope of developing a predictive model to help marketing to potential new clients. Suppose the following table represents data for 14 households. Home Landscaping Value Expenditures ($11099) ($11000) 243 8.2