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 bo = 173.0964 and b = 1.0343. Complete parts (a) through (d). 

Monthly Rent ($) 950 1,550 800 1,550 2,000 975 1,825 1.250 

Size (Square Feet) 900 1,300 900 1,150 1,900 650 1,300 1,100 

a. Determine the coefficient of determination, r², and interpret its meaning. 

b. Determine the standard error of the estimate, S_yx, and interpret its meaning. 

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

d. What other variables might explain the variation in monthly rent?

Answer 1