Statistics: Informed Decisions Using Data (4th Edition)

Published by Pearson
ISBN 10: 0321757270
ISBN 13: 978-0-32175-727-2

Chapter 14 - Review - Review Exercises - Page 730: 3a

Answer

$β_0=-399$ $β_1=2.531$ $ŷ=1878.9~dollars$

Work Step by Step

In MINITAB, enter the Square Footage values in C1 and in C2 enter the Rent per Month values. Select Stats -> Regression -> Regression -> Fit Regression Model Enter C2 in "Responses" and C1 in "Continuous Predictors" The least-squares regression line ($ŷ =b_1x+b_0$) will be shown in "Regression Equation", where C2 is ŷ (Rent per Month) and C1 is x (Square Footage) $ŷ =2.531x-399$ That is: $b_0=-399$ and $b_1=2.531$ $b_0$ is the estimate for $β_0$ and $b_1$ is the estimate for $β_1$. For a 900-square-foot apartment, that is, $x=900$: $ŷ =2.531\times900-399=1878.9$
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