You must use Excel for solving all the problems In problem 13.9 on page 501, an...

You must use Excel for solving all the problems

In problem 13.9 on page 501, an agent for real estate company wanted to predict the monthly rent for one-bedroom apartments, based on the size of the apartment. The data are stored in rentsliverspring. Use the results of that problem.

a. at the 0.05 level of significance, is there evidence of a linear relationship between the size of the apartment and the monthly rent?

b. Construct at 95% confidence interval estimate of the population slop b1.

Rentsliverspring data:

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

Solutions

Expert Solution

Solution :

Regression analysis is performed on the excel.

Part A )

At 95% confidence interval we compare the value of significance

If significance value is < 0.05 then there is a clear evidence of a linear relationship

Here sig value is 0.0134 < 0.05

So we can say that Monthly rent is dependent upon the size of the apartment

Part B )

Construct at 95% confidence interval estimate of the population slop b1

Calculated in the excel sheet

Interval :

Lower bound :0.1068

Upper bound 0.8794

jeff jeffy answered 1 year ago

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