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Regression Analysis and t test for correlation coefficient

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.At the .05 level of significance determine if the correlation between rental cost and apartment size is significant?
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

Also, given the above data, find the estimated regression equation which can be used to estimate the monthly rent for an apartment in this neighborhood using size as the predictor variable?

Also, find a point estimate for the average monthly rent for apartments having 1,000 square feet?

Solution Summary

The solution provides step by step method for the calculation of test statistic for significance of correlation coefficient. The solution also provides step by step method for the calculation of regression equations. Formula for the calculation and Interpretations of the results are also included.

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