| University | Temasek Polytechnic (TP) |
| Subject | STA2212E: Analytics For Business |
Question 4
An agent for a residential real estate company in a large city would like to predict the monthly rental cost (measured in thousands of dollars) for apartments based on the size of apartment (measured in square feet). A sample of 10 apartments was selected and the information needed is shown in the table below.
(a) Plot a scatter diagram for the above data.
(b) Perform the regression analysis for the above problem. Show your Excel output of the analysis.
(c) Find the simple linear regression equation that can be used to predict the monthly rental cost based on the size of apartment. Give your coefficients in 4 decimal places.
(d) Interpret the slope of your regression equation in part (c).
(e) Find and interpret the coefficient of correlation.
(f) Find and interpret the coefficient of determination.
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