The table below contains the value (in dollars) and the amount of annual rental income (in dollars) for a random sample of 44 houses.

X, value (in dollars)	Y, annual rental income (in dollars)
200000	10608
148000	8320
240000	12064
244500	11232
145000	8320
135000	7488
125000	7904
240000	10192
67500	6864
95000	7904
165000	8528
225000	12480
121000	12064
270000	12896
170000	9568
208000	10400
110000	7072
289000	11648
325000	12480
75000	7280
194000	11232
170000	12688
178000	11856
262000	10192
81000	6656
200000	8320
94000	8736
240000	11648
214000	8528
200000	12272
140000	9568
190000	8320
303000	12272
300000	12480
130000	9776
126000	6240
174000	10400
85000	7072
200000	10400
115000	7904
155000	7488
165000	13312
140000	9152
104000	7904

b) Make a scatterplot of X versus Y in StatCrunch or on your TI84. Which of the following is the correct graph?

c)Find the equation of the best-fitting line (the least squares regression equation).

Round values to 2decimal places.

Include the restricted domain.

equation: ?

restricted domain: ________ dollars <= X <= ________ dollars

d) Interpret the slope from part c in the context of this problem. (Pay attention to the units)

• Every time we increase (Select an answer): all houses; the mean value; the value the annual rental income; a randomly selected house; the mean annual rental income;
• by _________
• we can expect (Select an answer): the value; all houses; the mean value; a randomly selected house; the mean annual rental income; the annual rental income;
• to (Select an answer): decrease; increase
• by ________ on average.

e) Interpret the Y-intercept from part c in the context of this problem. Include units.

• When (Select an answer): houses; annual rental income; value; house
• is _________ , we expect (Select an answer): the value; all houses; the mean annual rental income; the mean value; the annual rental income; a randomly selected house
• to be _________.

Does it make sense to interpret the Y-intercept on this problem?

Why or why not? Select an answer

yes, since X = 0 is between Xmin and Xmax

yes, since X = 0 is not between Xmin and Xmax

yes, since Y = 0 is between Ymin and Ymax

yes, since Y = 0 is not between Ymin and Ymax

no, since X = 0 is between Xmin and Xmax

no, since X = 0 is not between Xmin and Xmax

no, since Y = 0 is between Ymin and Ymax

no, since Y = 0 is not between Ymin and Ymax f) Should you use the regression equation to predict the annual rental income of a randomly selected house that has a value of 305054 dollars?

Select an answer

yes, you can use the regression equation for any value of X

yes, this X-value is between Xmin and Xmax

no, this X-value is not between Xmin and Xmax Should you use the regression equation to predict the annual rental income of a randomly selected house that has a value of 483398 dollars?

Select an answer

no, this X-value is not between Xmin and Xmax

yes, you can use the regression equation for any value of X

yes, this X-value is between Xmin and Xmax 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 2decimal 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: (148000, 8320).

Make sure you use the stored equation and not the rounded equation from part c.

Round final answer to 2decimal places.

The residual for the house with a value of 148000 dollars is ___________ ________________ Interpret what this value means in the context of this problem.

• The actual annual rental income of a randomly selected house with a value of 148000 dollars is ________ ___________
• (Select an answer): above; below what was predicted.