Home Landscaping Value Expenditures ($1,000) ($1,000) 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. 243 8.2 322 10.9 197 12.3 340 16.3 300 15.7 400 18.8 800 23.5 200 9.5 522 17.5 546 22.0 438 12.2 463 13.5 635 17.8 357 13.8 (a) Develop a scatter diagram with home value as the independent variable. Home Value ($1,000) 900 800 700 600 500 400 300 200 100 0 0 5 10 15 20 25 Landscaping Expenditures ($1,000) Landscaping Expenditures ($1,000) 20 15 0 100 200 300 400 500 600 700 800 900 Home Value ($1,000) 0 Landscaping Expenditures ($1,000) 0 100 200 300 400 500 600 700 800 900 Home Value ($1,000) Home Value ($1,000) 900 800 700 600 500 400 300 200 100 0 0 5 10 15 20 25 Landscaping Expenditures ($1,000) (b) What does the scatter plot developed in part (a) indicate about the relationship between the two variables? The scatter diagram indicates a negative linear relationship between home value and landscaping expenditures. The scatter diagram indicates a nonlinear relationship between home value and landscaping expenditures. The scatter diagram indicates a positive linear relationship between home value and landscaping expenditures. The scatter diagram indicates no apparent 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 $). Round your numerical values to five decimal places.) = (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.) (e) Use the equation estimated in part (c) to predict the landscaping expenditures (in $) for a home valued at $275,000. (Round your answer to the nearest dollar.) $