Business and Management A study was conducted to determine if the rental price of an apartment in…
Business and Management A study was conducted to determine if the rental price of an apartment in a college town is related to the distance from campus and the apartment size. A random sample of apartments in State College, Pennsylvania, was obtained, and the monthly rental price (y, in dollars), distance from campus (x1, in miles), and square feet (x2) was recorded for each.
a. Estimate the regression coefficients in the model
Interpret the value of each estimated coefficient.
b. Do these predictor variables explain a significant amount of variation in Y? Conduct the appropriate model utility test using a = 0.05.
c. Find an estimate of an observed value of Y for x1 = 1.5 and x2 = 1200.