Looking an apartment in a diverse city like Seattle is exciting but also nerve wracking. The tool you learn in class can be helpful here.

The problem sets provide you opportunities to apply the statistical concept to real-world applications that emphasize why we care about this. You also have a chance to use statistical software to handle data and interpret results.

Kyle is looking for an apartment for himself and a roommate, and would like to be sure to pay a fair price. He is would like to rent an apartment about 1000 square feet in size. He collected the following data on Craig's list on the prices of 10 apartments for rent in the downtown Seattle area. He then used regression analysis to estimate the relationship between the size of an apartment (x in square feet) and its rent (y in dollars).

The following regression results are produced from excel.

Regression Statistics
Multiple R	0.54
R Square	0.30
Adjusted R Square	0.21
Standard Error	452.15
Observations	10

ANOVA
	df	SS	MS	F	Significance F
Regression	1	688718.30	688718.30	3.37	0.10
Residual	8	1635525.80	204440.72
Total	9	2324244.10

	Coefficients	Standard Error	t Stat	P-value	Lower 95%	Upper 95%
Intercept	708.18	394.13	1.80	0.11	-200.69	1617.05
X Variable 1	0.77	0.42	1.84	0.10	-0.20	1.73

1)Estimate the change in rent associated with 100 square foot decrease in an apartment's size.

Group of answer choices

A $77 decrease in rent

A $0.77 decrease in rent

A $77 increase in rent

A $0.77 increase in rent

A $708.18 decrease in rent

2)Give a point estimate of the rent of a 1000 square foot apartment.

3)How much of the variation in rents can be explained by the variation in the square footage of an apartment. ( write in two decimals, e.g. 0.51 )

4)For the hypothesis tests, H0:1=0;H1:10, What is the test statistic of the coefficient of the square footage? write with 2 decimals.

5)For the hypothesis tests, H0:1=0;H1:10,What is the p-value of the coefficient of the square footage ? write with 2 decimals.

6)There is a statistical significant relationship between the rents and the square footage of an apartment at a 5% significant level.

True

False