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The table below contains the value (in dollars) and the amount of annual rental income (in dollars) for a random sample of 42 houses.

 


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The table below contains the value (in dollars) and the amount of annual rental income (in dollars) for a random sample of 42 houses. X, value (in dollars) Y, annual rental income (in dollars) 67500 6864 155000 7488 90000 6240 77000 4576 85000 7072 200000 12272 165000 8528 135000 7488 170000 9568 200000 8320 110000 7072 214000 8528 225000 12480 130000 9776 200000 10400 104000 7904 165000 13312 240000 12064 240000 10192 75000 7280 303000 12272 125000 7904 310000 12480 240000 11648 190000 8320 289000 11648 208000 10400 244500 11232 178000 11856 81000 6656 325000 12480 270000 12896 174000 10400 140000 9568 115000 7904 262000 10192 194000 11232 94000 8736 126000 6240 200000 10608 148000 8320 121000 12064 a) State the random variables. rv X the value rv Y the annual rental income oof a randomly selected house oof a randomly selected house b) Make a scatterplot of X versus Y in StatCrunch (optional). Why do we wish to sketch a scatterplot? To verify that a linear model is appropriate and to look for outliers. c) Find the equation of the best-fitting line (the least squares regression equation). Round values to 2 decimal places. Include the restricted domain. equation: ?= restricted domain: dollars e) Interpret the Y-intercept from part c in the context of this problem. Include units. When Select an answer is Select an answer to be we expect ne Does it make sense to interpret the Y-intercept on this problem? Why or why not? [Select an answer f) Should you use the regression equation to predict the annual rental income of a randomly selected house that has a value of 246372 dollars? Select an answer Should you use the regression equation to predict the annual rental income of a randomly selected house that has a value of 501292 dollars? Select an answer Looking at your answers above, predict the annual rental income for the one above that it made sense to do so. Make sure you use the stored equation and not the rounded equation from part c. Round final answer to 2 decimal places. The predicted annual rental income for a randomly selected house that has a value of dollars is g) Compute the residual for the following ordered pair in the data: (126000, 6240). Make sure you use the stored equation and not the rounded equation from part c. Round final answer to 2 decimal places.

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