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ASSIGNMENT 3 QUESTIONS;Question 1;An agent for a residential real estate company in a large city would like to be able...

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ASSIGNMENT 3 QUESTIONS;Question 1;An agent for a residential real estate company in a large city would like to be able to;predict the weekly rental cost for apartments based on the size of the apartment as;defined by the number of square metres in area. A sample of 25 apartments was selected;from across the city, and the information gathered recorded in the following table;Apartment Weekly Rent;($);Size (square;metres);Apartment Weekly Rent;($);Size (square;metres);1 219 79 14 415 127;2 369 135 15 323 109;3 277 101 16 335 114;4 346 114 17 254 116;5 219 67 18 392 117;6 392 138 19 277 107;7 381 106 20 265 83;8 216 67 21 369 126;9 202 65 22 381 97;10 265 89 23 277 70;11 323 102 24 185 93;12 381 119 25 404 111;13 531 184;(a) What are the dependent and independent variables in this problem? Explain.;(b) Use the least-squares method to find the regression coefficients (show workings). State;the simple linear regression equation.;(c) Interpret the meaning of both regression coefficients in this problem.;(d) Predict the weekly rental cost for an apartment that has an area of 100 square metres.;(e) Would it be appropriate to use the model to predict the weekly rental for an apartment;that has an area of 50 square metres? Explain.;(f) Your friends are considering signing a lease for an apartment in this city. They are;trying to decide between two apartments, one with an area of 100 square metres for a;weekly rent of $294 and the other with an area of 120 square metres for a weekly rent of;$329. What would you recommend to them? Why?

 

Paper#76178 | Written in 18-Jul-2015

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