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http:/litemprod.pea comeing corpiVI/print brightered 6/1 1/22, 2:23 PM 6. An agent for a residential real estate company in a suburb located outside a major city

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http:/litemprod.pea comeing corpiVI/print brightered 6/1 1/22, 2:23 PM 6. An agent for a residential real estate company in a suburb located outside a major city has the business objective of developing more accurate estimates of the monthly rental cost for apartments. Toward the goal, the agent would like to use the size of an apartment, as defined by square footage to predict the monthly rental cost. The agent selects a sample of 8 one-bedroom apartments and the data are shown Complete parts (a) through (n). Monthly Rent ($) 875 1,600 825 1,500 2,000 925 1,700 1,400 Size (Square Feet) 800 1,350 950 1,150 1,900 650 1,350 1,050 a. Construct a scatter plot. Choose the correct graph below OA OB A Rant (S) ARent (S) 2.000 2.000- 2,000 Size (So B) 2,000 Size (sq !) b. Use the least-squares method to determine the regression coefficients by and by. Do (Round to one decimal place as needed. (Round to one decimal place as c. Interpret the meaning of bo and b, in this problem. Choose the correct answer below. O A. For each increase of 1 square foot in space, the monthly rent is expected to increase by bo dollars. Since X cannot b O B. For each increase of 1 square foot in space, the monthly rent is expected to increase by bo dollars. Apartments in thi C. For each increase of 1 square foot in space, the monthly rent is expected to increase by b, dollars. Apartments in thi O D. For each increase of 1 square foot in space, the monthly rent is expected to increase by by dollars. Since X cannot b d. Predict the mean monthly rent for an apartment that has 1,000 square feet. The predicted mean monthly rent for such an apartment is $ (Round to the nearest cent as needed.) e. Why would it not be appropriate to use the model to predict the monthly rent for apartments that have 500 square feet? A. The model predicts that the monthly rent for an apartment that has 500 square feet would be unrealistically low. O B. The size of an apartment has no effect on the monthly rent, according to this model. There must be another factor thi O C. The correlation between an apartment's size and its monthly rent is too weak to use this model for such a prediction. O D. An apartment with 500 square feet is outside the relevant range for the independent variable. f. Two people are considering signing a lease for an apartment in this neighborhood. They are trying to decide between two apartments, one with 1,000 square feet for a monthly rent of $1,275 and the other with 1,200 square feet for a monthly rent of $1,425. Based on (a) through (d), which apartment is a better deal? Based on (a) through (d), the apartment with (1) square feet is the better deal. hmpalitemprod pearsoncig com/spi/v 1/print/highered 5/20 4/1/23.2:23 PM (1) 0 1,200 O 1,000

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