Question

An agent for a real estate company in a large city would like to be able to predict the monthly rental cost for​ apartments, based on the size of the​ apartment, as defined by square footage. A sample of eight apartments in a neighborhood was​ selected, and the information gathered revealed the data shown below. For these​ data, the regression coefficients are b0 =121.0967 and b1 =1.0301. Complete parts​(a) through​ (d).

Monthly Rent​ ($)	875	1,550	800	1,450	1,950	925	1,750	1,300
Size​ (Square Feet)	850	1,250	1,050	1,200	1,900	700	1,350	1,050

Determine the coefficient of​ determination, r squared ​,and interpret its meaning.

r squared = _____

What is the meaning of

r squaredr2​?

A. r squared measures the proportion of variation in apartment size that can be explained by the variation in monthly rent.

B. r squared measures the proportion of variation in monthly rent that can be explained by the variation in apartment size.

C. r squared measures the proportion of variation in apartment size that cannot be explained by the variation in monthly rent.

D. r squared measures the proportion of variation in monthly rent that cannot be explained by the variation in apartment size.

b. Determine the standard error of the​ estimate, Upper Sxy​, and interpret its meaning.

Sxy = _____​(Round to three decimal places as​ needed.)

What is the meaning of

Upper S Subscript YXSYX​?

A. Sxy measures the amount by which an​ apartment's rent is less than the rent predicted by the regression equation.

B. Sxy measures the amount by which an​ apartment's rent is greater than the rent predicted by the regression equation.

C. Sxy measures the typical difference between an​ apartment's actual rent and the rent predicted by the regression equation.

D. Sxy measures the typical difference between an​ apartment's size and the size predicted by the regression equation.

c. How useful is this model for predicting the monthly​ rent?

What other variables might explain the variation in monthly​ rent? Select all that apply.

A. Whether tenants are allowed to keep pets

B. The condition of the apartment

C. The desirability of the apartment​ building's location

D. The presence or absence of carpeting in the apartment

E. Whether parking is available to tenants

Answer 1

from above:

coefficient of​ determination r² =0.7688

B. r squared measures the proportion of variation in monthly rent that can be explained by the variation in apartment size.

b)

Sxy = 188.773

C. Sxy measures the typical difference between an​ apartment's actual rent and the rent predicted by the regression equation.

c) all of the given options are correct