The following data represent the square footage and rents for apartments in Queens, New York and Nassau
Question:
The following data represent the square footage and rents for apartments in Queens, New York and Nassau County, New York. For this problem, only consider the Queens data.
(a) What are the estimates of b0 and b1? What is the mean rent of a 900-square-foot apartment in Queens?
(b) Compute the standard error of the estimate, se.
(c) Determine whether the residuals are normally distributed.
(d) Determine sb1.
(e) If the residuals are normally distributed, test whether a linear relation exists between the explanatory variable, x, and response variable, y, at the a = 0.05 level of significance.
(f) If the residuals are normally distributed, construct a 95% confidence interval for the slope of the true least-squares regression line.
(g) Construct a 90% confidence interval for the mean rent of all 900-square-foot apartments in Queens.
(h) Predict the rent of a particular 900-square-foot apartment in Queens.
(i) Construct a 90% prediction interval for the rent of a particular 900-square-foot apartment in Queens.
(j) Explain why the predicted rents found in parts (a) and (h) are the same, yet the intervals are different.
Step by Step Answer:
Statistics Informed Decisions Using Data
ISBN: 9780134133539
5th Edition
Authors: Michael Sullivan III