My homework question is: Table #10.1.6contains the value of the house and the amount of rental income in a year that the house brings in("Capital and rental," 2013). I need to find a regression equation between house value and rental income. Then I need to use the regression equation to find the rental income a house worth $230,000 and for a house worth $400,000. I also need to answer "Which rental income that you calculated do you think is closer to the true rental income? Why?"

Can you explain how to solve this and answer the last question? My textbook is confusing.

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