An agent for a residential real estate company in a large city would like to be able to predict the monthly rental cost of apartments based on the size of the apartment. Data for a sample of 25 apartments in a particular neighborhood are provided in the worksheet Apartments in the Excel workbook Apartments.xlsx.
At the .05 level of significance determine if the correlation between rental cost and apartment size is significant.
A.Yes, there is a statistically significant linear relationship between monthly rental cost and apartment size, because the p-value for this test is less than .0001.
B.Yes, there is a statistically significant linear relationship between monthly rental cost and apartment size, because the sample correlation coefficient 0.85 exceeds 0.50.
C.No, there is not a statistically significant linear relationship between monthly rental cost and apartment size, because the sample correlation coefficient is less than .95.
D.Yes, there is a statistically significant linear relationship between monthly rental cost and apartment size, because the t-test value, 7.74, is greater than the critical value 1.96.
Data from Apartments.xlsx:
Rent Size
950 850
1600 1450
1200 1085
1500 1232
950 718
1700 1485
1650 1136
935 726
875 700
1150 956
1400 1100
1650 1285
2300 1985
1800 1369
1400 1175
1450 1225
1100 1245
1700 1259
1200 1150
1150 896
1600 1361
1650 1040
1200 755
800 1000
1750 1200
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