Rental Income as Function of House Value 14000 12000 10000 8000 .. .. PLOT A Annual Rental Income ( 6000 4000 2000 50000 100000 150000 200000 250000 300000 350000 House Value ($) Rental Income as Function of House Value 350000 300000 250000 200000 House Value ( 150000 PLOT B 100000 50000 2000 4000 6000 8000 10000 12000 14000 Annual Rental Income ($)The table below contains information on 48 houses: the value of the house and the amount of rental income in a year that the house brings in ("Capital and rental," 2013). Table: Data of House Value versus Rental Value Rental Value Rental Value Rental Value Rental 81000 6656 77000 4576 75000 7280 67500 6864 95000 7904 94000 8736 90000 6240 85000 7072 121000 12064 115000 7904 110000 7072 104000 7904 135000 8320 130000 9776 126000 6240 125000 7904 145000 8320 140000 9568 140000 9152 135000 7488 165000 13312 165000 8528 155000 7488 148000 8320 178000 11856 174000 10400 170000 9568 170000 12688 200000 12272 200000 10608 194000 11232 190000 8320 214000 8528 208000 10400 200000 10400 200000 8320 240000 10192 240000 12064 240000 11648 225000 12480 289000 11648 270000 12896 262000 10192 244500 11232 325000 12480 310000 12480 303000 12272 300000 124801. Which of the two scatter plots displayed in the image above the problem script correctly depicts rental income as a function of house value? Enter letter corresponding to correct plot 2. Use technology to determine regression equation between house value and rental income. Enter regression equation in the format as follows: y^=a+bx with slope rounded to nearest thousandth and y-intercept value rounded to nearest integer. Examples of correctly entered answers: y^=-4210+.348x y^=67553-1.242x Linear regression equation calculator. Correlation and Linear Regression Calculator Applet A/ 3. Use the regression equation to find the rental income from a house worth $230,000 Enter amount to nearest dollar; do not include dollar sign, commas, or units of measure A/ 4. Use the regression equation to find the rental income from a house worth $400,000 Enter amount to nearest dollar; do not include dollar sign or units of measure5. Which rental income that you calculated do you think is closer to the true rental income? A. $10884, since house value producing this annual rental income would fall within range of house value data (rental income value is interpolated) B. Both calculations are equally accurate since they are calculated using the same regression equation C. $14964, since annual rental income is extrapolated Enter letter corresponding to correct
