Modern Business Statistics with Microsoft Excel (MindTap Course List)
Modern Business Statistics with Microsoft Excel (MindTap Course List)
5th Edition
ISBN: 9781285433301
Author: David R. Anderson, Dennis J. Sweeney, Thomas A. Williams
Publisher: Cengage Learning
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Chapter 16.1, Problem 7E

a.

To determine

Develop a scatter diagram for the data.

Check whether the simple linear regression model appears to be appropriate or not.

b.

To determine

Find the estimated regression equation to predict the monthly mortgage on the median-priced home given the average asking rent by using simple linear regression model.

Construct a standardized residual plot.

Check whether the simple linear regression model appear to be appropriate or not.

c.

To determine

Find the estimated regression equation to predict the monthly mortgage on the median-priced home given the average asking rent by using the second-order model.

d.

To determine

Identify the estimated regression equation developed in part (a) or part (c) is prefer.

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