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....

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 8 one-bedroom apartments and the data are shown.

Monthly Rent ($)	925	1,550	800	1,450	1,950	950	1,800	1,300
Size (Square Feet)	800	1,350	1,050	1,100	2,000	650	1,300	950

. Construct a scatter plot. Choose the correct graph below.

02,00002,000Size (sq ft)Rent ($)

A scatter plot has a horizontal axis labeled Size (in square feet) from 0 to 2000 in increments of 400 and a vertical axis labeled Rent ($) from 0 to 2000 in increments of 400. A series of plotted points are clustered around a line that falls from left to right passing through the points (800,1200) and (1200,1000). All coordinates are approximate.

02,00002,000Size (Sq ft)Rent ($)

A scatter plot has a horizontal axis labeled Size (in square feet) from 0 to 2000 in increments of 400 and a vertical axis labeled Rent ($) from 0 to 2000 in increments of 400. A series of plotted points are clustered around a line that rises from left to right passing through the points (1200,1400) and (1600,1700). All coordinates are approximate.

02,00002,000Size (Sq ft)Rent ($)

A scatter plot has a horizontal axis labeled Size (in square feet) from 0 to 2000 in increments of 400 and a vertical axis labeled Rent ($) from 0 to 2000 in increments of 400. A series of plotted points fall exactly on a line that falls from left to right, where the points range from (650,1500) to (2,000,500). All coordinates are approximate.

02,00002,000Size (Sq ft)Rent ($)

A scatter plot has a horizontal axis labeled Size (in square feet) from 0 to 2000 in increments of 400 and a vertical axis labeled Rent ($) from 0 to 2000 in increments of 400. A series of plotted points fall exactly on a line that rises from left to right, where the points range from (650,650) to (2,000,2000). All coordinates are approximate.

b. Use the least-squares method to determine the regression coefficients

and

b1.

enter your response here

(Round to one decimal place as needed.)

enter your response here

(Round to one decimal place as needed.)

c. Interpret the meaning of

and

in this problem. Choose the correct answer below.

For each increase of 1 square foot in space, the monthly rent is expected to increase by

b0 dollars.

Since X cannot be zero,

has no practical interpretation.

For each increase of 1 square foot in space, the monthly rent is expected to increase by

b1 dollars.

Since X cannot be zero,

has no practical interpretation.

For each increase of 1 square foot in space, the monthly rent is expected to increase by

b0 dollars.

Apartments in this neighborhood cost at least b1 dollars.

For each increase of 1 square foot in space, the monthly rent is expected to increase by

b1 dollars.

Apartments in this neighborhood cost at least

Jun 11, 2022

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