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. Complete parts (a) through (f). 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 d. Predict the mean monthly rent for an apartment that has 1,000 square feet. The predicted mean monthly rent for such an apartment is $enter your response here. (Round to the nearest cent as needed.) e. Why would it not be appropriate to use the model to predict the monthly rent for apartments that have 500 square feet? A. The size of an apartment has no effect on the monthly rent, according to this model. There must be another factor that contributes to the rent price. B. The correlation between an apartment's size and its monthly rent is too weak to use this model for such a prediction. C. The model predicts that the monthly rent for an apartment that has 500 square feet would be unrealistically low. D. An apartment with 500 square feet is outside the relevant range for the independent variable. f. Two people are considering signing a lease for an apartment in this neighborhood. They are trying to decide between two apartments, one with 1,000 square feet for a monthly rent of $1,275 and the other with 1,200 square feet for a monthly rent of $1,425. Based on (a) through (d), which apartment is a better deal? Based on (a) through (d), the apartment with ▼ 1,200 1,000 square feet is the better deal.

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. Complete parts (a) through (f).

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

d. Predict the mean monthly rent for an apartment that has 1,000 square feet.

The predicted mean monthly rent for such an apartment is

$enter your response here.

(Round to the nearest cent as needed.)

e. Why would it not be appropriate to use the model to predict the monthly rent for apartments that have 500 square feet?

The size of an apartment has no effect on the monthly rent, according to this model. There must be another factor that contributes to the rent price.

The correlation between an apartment's size and its monthly rent is too weak to use this model for such a prediction.

The model predicts that the monthly rent for an apartment that has 500 square feet would be unrealistically low.

An apartment with 500 square feet is outside the relevant range for the independent variable.

f. Two people are considering signing a lease for an apartment in this neighborhood. They are trying to decide between two apartments, one with 1,000 square feet for a monthly rent of $1,275 and the other with 1,200 square feet for a monthly rent of $1,425. Based on (a) through (d), which apartment is a better deal?

Based on (a) through (d), the apartment with

▼

1,200

1,000

square feet is the better deal.

Jun 11, 2022

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