The commercial division of a real estate firm is conducting a regression analysis of the relationship between , annual gross rents (in thousands of dollars), and , selling price (in thousands of dollars) for apartment buildings. data were collected on several properties recently sold and the following computer output was obtained. y =20.0 + 7.26 x
predictor coef se coef t
constant 20.000 3.2213 6.21
x 7.290 1.3622 5.29
analysis of variance
source df ss
regression 1 41,587.8
residual error 7
total 8 51,984.9
a. how many apartment buildings were in the sample?
b. write the estimated regression equation (to 2 decimals if necessary)
c. what is the value of sb1 (to 4 decimals)?
d. use the f statistic to test the significance of the relationship at a .05 level of significance.
compute the f test statistic (to 2 decimals).
what is the p-value?
what is your conclusion?
e. predict the selling price of an apartment building with gross annual rents of $60,000 (to 1 decimal).