An agent for a residential real estate company in a suburb located outside of Washington,DC, has the business objective of developing more accurate estimates of the monthly rental cost for apartments. Toward that goal the agent would like to use the size of an apartment, as defined by square footage to predict the monthly rental cost. The agent selects a sample of 48 apartments in a particular residential neighborhood and collects the following data:
Data for 13.9
|
Size (Square feet) |
Rent ($) |
|
524 |
1110 |
|
616 |
1175 |
|
666 |
1190 |
|
830 |
1410 |
|
450 |
1210 |
|
550 |
1225 |
|
780 |
1480 |
|
815 |
1490 |
|
1070 |
1495 |
|
610 |
1680 |
|
835 |
1810 |
|
660 |
1625 |
|
590 |
1469 |
|
675 |
1395 |
|
744 |
1150 |
|
820 |
1140 |
|
912 |
1220 |
|
628 |
1434 |
|
645 |
1519 |
|
840 |
1105 |
|
800 |
1130 |
|
804 |
1250 |
|
950 |
1449 |
|
800 |
1168 |
|
787 |
1224 |
|
960 |
1391 |
|
750 |
1145 |
|
690 |
1093 |
|
840 |
1353 |
|
850 |
1530 |
|
965 |
1650 |
|
1060 |
1740 |
|
665 |
1235 |
|
775 |
1550 |
|
960 |
1545 |
|
827 |
1583 |
|
655 |
1575 |
|
535 |
1310 |
|
625 |
1195 |
|
749 |
1200 |
|
634 |
1185 |
|
641 |
1444 |
|
860 |
1385 |
|
740 |
1275 |
|
593 |
1050 |
|
880 |
1650 |
|
895 |
1340 |
|
692 |
1560 |
Use the least-squares method to determine the regression coefficients b0 and b1,,,
You may use Minitab/ Excel for all of your calculations for all the problems, but must attach the relevant output (Minitab or Excel);
b. Use the least-squares method to determine the regression coefficients b0 and b1
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