(c) Using a quadratic regression model, develop an estimated regression equation to predict the monthly mortgage on the median-priced home, given the average asking rent. If required, round your answers to three decimal places. Let x represent Rent ($). Let x2 represent Rent Squared.
Correlation
Correlation defines a relationship between two independent variables. It tells the degree to which variables move in relation to each other. When two sets of data are related to each other, there is a correlation between them.
Linear Correlation
A correlation is used to determine the relationships between numerical and categorical variables. In other words, it is an indicator of how things are connected to one another. The correlation analysis is the study of how variables are related.
Regression Analysis
Regression analysis is a statistical method in which it estimates the relationship between a dependent variable and one or more independent variable. In simple terms dependent variable is called as outcome variable and independent variable is called as predictors. Regression analysis is one of the methods to find the trends in data. The independent variable used in Regression analysis is named Predictor variable. It offers data of an associated dependent variable regarding a particular outcome.
n 2011, home prices and mortgage rates fell so far that in a number of cities the monthly cost of owning a home was less expensive than renting. The following data show the average asking rent for 10 markets and the monthly mortgage on the
| (c) | Using a quadratic regression model, develop an estimated regression equation to predict the monthly mortgage on the median-priced home, given the average asking rent. If required, round your answers to three decimal places. |
| Let x represent Rent ($). | |
| Let x2 represent Rent Squared. |
| City | Rent ($) | Mortgage ($) | |||
| Atlanta | 840 | 539 | |||
| Chicago | 1,062 | 1,002 | |||
| Detroit | 823 | 626 | |||
| Jacksonville | 779 | 711 | |||
| Las Vegas | 796 | 655 | |||
| Miami | 1,071 | 977 | |||
| Minneapolis | 953 | 776 | |||
| Orlando | 851 | 695 | |||
| Phoenix | 762 | 651 | |||
| St. Louis | 723 | 654 |
|
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