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 neighbourhood 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 neighbourhood. 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.
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