Next Real estate investment in college towns promises good returns (The College Investor, August 22, 2017). First, students offer a steady stream of rental demand as cash-strapped public universities are unable to house their students beyond freshman year. Second, this demand is projected to grow as more children of baby boomers head to college Table 7.12 shows a portion of rental data for Ann Arbor, Michigan, which is home to the main campus of the University of Michigan. The data include the monthly rent (Rent in S), the number of bedrooms (Beds), the number of bathrooms (Baths) and the square footage (Sqft) for 40 rentals OFILE AnnArbor TABLE 72 Rental Data for Ann Arbor, Michigan in 40) Rent Beds Baths Syli 645 1 1 500 675 1 1 648 2400 3 25 2700 a. Plot rent against each of the three predictor variables and evaluate whether the relationship is best captured by a line or a curve Identify variables that may require a log transformation HT ht fx Rent Rent Beds T 760 4 5 1 1 1 Bath 1 1 1 1 1 1 000 320 HO 7 SSR 19 1 859 900 10 905 12 SOG 1 15 1 1 1 1 2 1 14 15 15 17 1 1 1 1 2 1 1 1 2 2 2 2 2 1 2 2 2 2 2 2 2 2 2 ST 1 1 61 929 960 975 990 995 1029 1039 1049 1050 1084 1100 1100 1185 1245 1275 1275 1400 2 2 2 2 2 1 21 Soft 500 6 700 903 812 920 900 885 1000 920 876 920 975 1100 900 1000 1299 1164 11NO 110 1163 1020 1150 1225 136 1400 1350 1185 1200 1412 1700 1440 1460 1460 1170 1944 2265 1700 4819 2700 2 24 25 2 2 92 2 2 E 1 20 29 30 31 2 1 2 2 OSVT ===== -=-=-=-=- 2 3 3 33 E E E 15 36 E 1509 1518 1600 1635 1635 1650 1750 1950 1975 2200 2400 1 3 3 IS 15 3 3 LE 38 19 40 E 4 7 5 3 25 43 44 16 Next Real estate investment in college towns promises good returns (The College Investor, August 22, 2017). First, students offer a steady stream of rental demand as cash-strapped public universities are unable to house their students beyond freshman year. Second, this demand is projected to grow as more children of baby boomers head to college Table 7.12 shows a portion of rental data for Ann Arbor, Michigan, which is home to the main campus of the University of Michigan. The data include the monthly rent (Rent in S), the number of bedrooms (Beds), the number of bathrooms (Baths) and the square footage (Sqft) for 40 rentals OFILE AnnArbor TABLE 72 Rental Data for Ann Arbor, Michigan in 40) Rent Beds Baths Syli 645 1 1 500 675 1 1 648 2400 3 25 2700 a. Plot rent against each of the three predictor variables and evaluate whether the relationship is best captured by a line or a curve Identify variables that may require a log transformation HT ht fx Rent Rent Beds T 760 4 5 1 1 1 Bath 1 1 1 1 1 1 000 320 HO 7 SSR 19 1 859 900 10 905 12 SOG 1 15 1 1 1 1 2 1 14 15 15 17 1 1 1 1 2 1 1 1 2 2 2 2 2 1 2 2 2 2 2 2 2 2 2 ST 1 1 61 929 960 975 990 995 1029 1039 1049 1050 1084 1100 1100 1185 1245 1275 1275 1400 2 2 2 2 2 1 21 Soft 500 6 700 903 812 920 900 885 1000 920 876 920 975 1100 900 1000 1299 1164 11NO 110 1163 1020 1150 1225 136 1400 1350 1185 1200 1412 1700 1440 1460 1460 1170 1944 2265 1700 4819 2700 2 24 25 2 2 92 2 2 E 1 20 29 30 31 2 1 2 2 OSVT ===== -=-=-=-=- 2 3 3 33 E E E 15 36 E 1509 1518 1600 1635 1635 1650 1750 1950 1975 2200 2400 1 3 3 IS 15 3 3 LE 38 19 40 E 4 7 5 3 25 43 44 16