Question

A landscaping company has collected data on home values (in thousands of $) and expenditures (in thousands of $) on landscaping with the hope of developing a predictive model to help marketing to potential new clients. Suppose the following table represents data for 14 households 

Landscaping Expenditures ($1,000) Home Value ($1,000) 241 8.2 322 10.7 197 12.1 340 16.3 300 15.7 400 18.8 800 23.5 200 9.5 522 17.5 546 22.0 436 12.2 463 13.5 635 17.8 357 13.8 S04 PM 

(a) Develop a scatter diagram with home value as the independent variable

(c) Use the least squares method to develop the estimated regression equation. (Let xhome value (in thousands of $), and let y landscaping expenditures (in thousands of $) Round your numerical values to five decimal places.) .02136x+ 6.32605 

(d) For every additional $1,000 in home value, estimate how much additional will be spent (in $) on landscaping. (Round your answer to the nearest cent.) s27 69 X (e) Use the equation estimated in part (c) to predict the landscaping expenditures (in $) for a home valued at $475,000. (Round your answer to the nearest dollar.) $16

Answer 1

Date Given Home valnethousgnds o 4:-Landsoping ex pendityne Y O.02I26 2 f 6 32605 every addit enl jnhome value estimate additien wili be spent an land scap ping loao O.0213 6 Predi cted land slorpins expendi tux at for arahame Veued 475,000 0.02136 x415 6 32 605 16.47