Chapter 14.7, Problem 40E

Apartment Selling Price. The commercial division of a real estate firm is conducting a regression analysis of the relationship between x, annual gross rents (in thousands of dollars), and y, selling price (in thousands of dollars) for apartment buildings. Data were collected on several properties recently sold and the following computer output was obtained.

1. a. How many apartment buildings were in the sample?
2. b. Write the estimated regression equation.
3. c. What is the value of $s_{b_1}$?
4. d. Use the F statistic to test the significance of the relationship at a .05 level of significance.
5. e. Predict the selling price of an apartment building with gross annual rents of $50,000.