An economist wanted to investigate the relationship between office rents (the dependent variable) and vacancy rates. Accordingly, he took a random sample of monthly office rents and the percentage of vacant office space in 30 different cities.

1. Determine the regression line.

A: y^=20.64?0.3038x

B: y^=15.18?0.6773x

C: y^=20.64+0.3038x

2. What are correct interpretations for the coefficients?

A: The slope indicates that for each additional one percentage point increase in the vacancy rate rents on average decrease by b1.

B: The linear relationship existing in the range of scope of the x and y data.

C: If the coefficient b1 is near zero, it suggests there is noeffect.

3. To evaluate your coefficients, what is your SSE?

A: 221.8

B: 230.9

C: 201.3

D: 197.5

4. To evaluate your coefficients, what is your S??

A: 2.18

B: 2.87

C: 1.78

D: 1.95

5. To infer that office rents and vacancy rates are linearly related, what are the correct test statisticwe should use for Hypothesis testing :

A: Z-test

B: T-Test

C: F-Test

D: Chi-Square test

6. For above question, thevalue of the test statistic is:

A: -3.18

B: -3.87

C: -3.39

D: -3.95

7. Look at the test statistic and compare it with the threshold value:

A: There is sufficient evidence to conclude that office rents and vacancy rates are linearly related.

B: There is not sufficient evidence to conclude that office rents and vacancy rates are linearly related.

Rent Vacancy rate Unemployment rate 21.70 3 8.2 16.42 11 11 14.84 17 6.6 24.90 2 7 16.62 7 8 11.75 18 9.6 19.33 9 7.1 14.60 12 7.6 12.01 13 11.6 19.88 13 4.7 19.83 8 5.7 17.78 16 5.8 17.79 10 6.4 17.08 3 8.1 19.39 12 6.4 15.81 17 8.2 21.15 3 9 12.33 11 11 15.58 16 7.2 10.83 20 9.3 17.38 20 8.4 15.09 14 10.4 23.19 8 7.3 19.27 5 6.7 14.88 2 10.2 16.27 20 7.4 18.53 15 8.6 14.25 19 7.9 17.68 2 8.5 19.74 14 6.1