A real estate company in downtown Miami would like to be able to predict the monthly rental cost for apartments ...

  

A real estate company in downtown Miami 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 25 apartments in a particular residential neighborhood was chosen.

Q-2a: Construct a scatter plot of rent/size.

Q-2b: Find the equation of the least squares regression line that models the relationship between square footage and rental amount and interpret the meaning of the coefficients.

Q-2c: Predict the monthly rent for an apartment with 1000 square feet.

Q-2d: Explain why it would not be appropriate to use the model to predict the monthly rent for apartments that have 500 square feet.

Q-2e: You are considering signing a lease for an apartment in this residential neighborhood. You are deciding between two apartments, one with 1,000 square feet that rents for $1,275 and the other with 1,200 square fee that rents for $1,425. Which is a better deal? Explain.

     Size   (x)  Rent (y)   850 950   1450 1600   1085 1200   1232 1500   718 950   1485 1700   1136 1650   726 935   700 875   956 1150   1100 1400   1285 1650   1985 2300   1369 1800   1175 1400   1225 1450   1245 1100   1259 1700   1150 1200   896 1150   1361 1600   1040 1650   755 1200   1000 800   1200 1750