An agent for a real estate company wanted to predict the monthly rent for apartments...
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An agent for a real estate company wanted to predict the monthly rent for apartments based on the size of the apartment. The data for a sample of 25 apartments is available below. Perform a t test for the slope to determine if a significant linear relationship between the size and the rent exists. a. At the 0.05 level of significance, is there evidence of a linear relationship between the size of the apartment and the monthly rent? b. Construct a 95% confidence interval estimate of the population slope, 1.
\begin{tabular}{||r|r|r|} \hline & \multicolumn{2}{|c|}{ A } \\ \hline 1 & Size_(sq._ft) & \multicolumn{1}{c|}{ B } \\ \hline 2 & 850 & 1950 \\ \hline 3 & 1450 & 2575 \\ \hline 4 & 1085 & 2225 \\ \hline 5 & 1232 & 2525 \\ \hline 6 & 718 & 1950 \\ \hline 7 & 1495 & 2675 \\ \hline 8 & 1136 & 2650 \\ \hline 9 & 716 & 1935 \\ \hline 10 & 710 & 1875 \\ \hline 11 & 966 & 2150 \\ \hline 12 & 1100 & 2425 \\ \hline 13 & 1285 & 2625 \\ \hline 14 & 1995 & 3275 \\ \hline 15 & 1359 & 2825 \\ \hline 16 & 1165 & 2400 \\ \hline 17 & 1235 & 2450 \\ \hline 18 & 1255 & 2100 \\ \hline 19 & 1269 & 2725 \\ \hline 20 & 1150 & 2175 \\ \hline 21 & 886 & 2125 \\ \hline 22 & 1371 & 2575 \\ \hline 23 & 1040 & 2625 \\ \hline 24 & 755 & 2225 \\ \hline 25 & 1010 & 1775 \\ \hline 26 & 1210 & 2775 \\ \hline \end{tabular} a. Determine the hypotheses for the test. Choose the correct answer below. A. H0:0=0 B. H0:10 H1:0=0 H1:10 Find the test statistic. tSTAT= (Round to two decimal places as needed.) What is the p-value? p-value = (Round to three decimal places as needed. ) Reach a decision. H0. There is evidence to conclude that there is a linear relationship between the size of the apartment and the monthly rent. b. The 95% confidence interval is 1 (Round to four decimal places as needed.)
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