Homework SourseAn agent for a residential real estate company in a large ci
An agent for a residential real estate company in a large city would like to be able to predict the monthly rental cost of apartments based on the size of the apartment. Data for a sample of 25 apartments in a particular neighborhood are provided in the worksheet Apartments in the Excel workbook Apartments.xlsx.
At the .05 level of significance determine if the correlation between rental cost and apartment size is significant.
| Rent | Size |
| 950 | 850 |
| 1600 | 1450 |
| 1200 | 1085 |
| 1500 | 1232 |
| 950 | 718 |
| 1700 | 1485 |
| 1650 | 1136 |
| 935 | 726 |
| 875 | 700 |
| 1150 | 956 |
| 1400 | 1100 |
| 1650 | 1285 |
| 2300 | 1985 |
| 1800 | 1369 |
| 1400 | 1175 |
| 1450 | 1225 |
| 1100 | 1245 |
| 1700 | 1259 |
| 1200 | 1150 |
| 1150 | 896 |
| 1600 | 1361 |
| 1650 | 1040 |
| 1200 | 755 |
| 800 | 1000 |
| 1750 | 1200 |
Solution
A.No, there is not a statistically significant linear relationship between monthly rental cost and apartment size, because the sample correlation coefficient is less than .95.
