egin{tabular}{|l|l|l|} hline & City \ hline Buy Versus Rent. Occasionally, it has been the case that home prices and mortgage & Atlanta \ hline rates dropped so low that in a number of cities the monthly cost of owning a home was & Chicago \ hline less expensive than renting. The following data show the average asking rent for 10 & Detroit \ hline markets and the monthly mortgage on the median priced home (including taxes and & Jacksonville, \ hline insurance) for 10 cities where the average monthly mortgage payment was less than & Las Vegas \ hline the average asking rent (The Wall Street Journal). & Miami \ hline & Minneapolis \ hline a. Develop the estimated regression equation that can be used to predict the monthly & Orlando, Fla. \ hline mortgage given the average asking rent. & Phoenix \ hline b. Test for a significant relationship. Use 0.05 & St. Louis \ hline c. Did the estimated regression equation provide a good fit? & & \ hline d. Develop a 95% confidence and prediction intervals & & \ hline end{tabular}

Buy Versus Rent. Occasionally, it has been the case that home prices and mortgage rates dropped so low that in a number of cities the monthly cost of owning a home was less expensive than renting. The following data show the average asking rent for 10 markets and the monthly mortgage on the median priced home (including taxes and insurance) for 10 cities where the average monthly mortgage payment was less than the average asking rent (The Wall Street Journal). a. Develop the estimated regression equation that can be used to predict the monthly mortgage given the average asking rent. b. Test for a significant relationship. Use 0.05 c. Did the estimated regression equation provide a good fit? d. Develop a 95% confidence and prediction intervals City Atlanta Chicago Detroit Jacksonville, Las Vegas Miami Minneapolis Orlando, Fla. Phoenix St. Louis