A real estate agent wishes to estimate the monthly rental for apartments based on the size (square feet) and location of the apartments. She chose the model y = Bo + B1X, + ß>x2 +e, where x, represents the square footage of the apartment ane 1 if located in town center This linear regression model was fitted to a sample of size 50 to produce the regression equation below. Complete parts a through c. O if not located in town center y = 160 + 1.3x, + 300x2 a. Predict the average monthly rent for an apartment located in the town center that has 1,450 square feet. $ (Simplify your answer.)
Correlation
Correlation defines a relationship between two independent variables. It tells the degree to which variables move in relation to each other. When two sets of data are related to each other, there is a correlation between them.
Linear Correlation
A correlation is used to determine the relationships between numerical and categorical variables. In other words, it is an indicator of how things are connected to one another. The correlation analysis is the study of how variables are related.
Regression Analysis
Regression analysis is a statistical method in which it estimates the relationship between a dependent variable and one or more independent variable. In simple terms dependent variable is called as outcome variable and independent variable is called as predictors. Regression analysis is one of the methods to find the trends in data. The independent variable used in Regression analysis is named Predictor variable. It offers data of an associated dependent variable regarding a particular outcome.
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