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In: Statistics and Probability

An agent for a real estate company wanted to predict the monthly rent for apartments based...

An agent for a real estate company wanted to predict the monthly rent for apartments based on the size of the apartment. The data for a sample of

25 apartments is available below. Perform a t test for the slope to determine if a significant linear relationship between the size and the rent exists.

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 a​ 95% confidence interval estimate of the population​ slope, betaβ1.

Size_(sq._ft) Rent_($)
850 1925
1440 2575
1075 2225
1242 2525
728 1950
1485 2725
1126 2675
726 1935
690 1850
966 2150
1110 2375
1285 2675
1985 3275
1369 2800
1165 2400
1225 2475
1235 2125
1269 2675
1160 2175
906 2125
1361 2600
1040 2625
745 2200
1010 1825
1210 2750

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orchestra answered 3 years ago
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