Question

An agent for a residential real estate company in a suburb located outside a major city has the business objective of developing more accurate estimates of the monthly rental cost for apartments. Toward the 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 a one-bedroom apartments and the data are shown. Complete parls (a) through (f). Monthly Rent ($) 900 1,450 800 1,550 1,950 925 1,800 1,250 Size (Square Feet) 750 1,200 1,050 1,250 2,000 650 1,350 1,050 a. Construct a scatter plot. Choose the correct graph below. OA C 2.000 Rot ( 2.000 Q 2000 Ft 2.000 2.000 2,000 2.000 Size (30 m SIS Size 30 m b. Use the least-squares method to determine the regression coefficients bo and by bo = (Round to one decimal place as needed.)

how to find the b0 through excel

Answer 1

Go to Excel fill your data:

900 750 1450 1200 800 1050 1550 1250 1950 2000 925 650 1350 1800 1250 1050

select above data, :-Go to insert :-Scatter :-right click on any point :-add trend line:-tick the box:Display Equation on chart

2500 y 0.8316x +57.996 R2 0.7494 2000 1500 Series1 Linear (Series 1) 1000 500 0 500 1000 1500 2000 2500

regression line equation:y=0.8316x + 57.996

compare it with regression equation:y=b1x+b0

Hence ,

b1=0.8316=0.8

b0=57.996=58