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    Scatter plot and Linear Regression Equation Analysis

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    13.5 Circulation is the lifeblood of the publishing business. The larger the sales of a magazine, the more it can charge advertisers. Recently, a circulation gap has appeared between the publishers reports of magazines newsstand sales and subsequent audits by the Audit Bureau of Circulations. The data below represent the reported and audited newsstand sales ( in thousands) in 2001 for the following 10 magazines:

    Magazine Reported (X) Audited (Y)
    YM 621.0 299.6
    CosmoGirl 359.7 207.7
    Rosie 530.0 325.0
    Playboy 492.1 336.3
    Esquire 70.5 48.6
    TeenPeople 567.0 400.3
    More 125.5 91.2
    Spin 50.6 39.1
    Vogue 353.3 268.6
    Elle 263.6 214.3

    A. Construct a scatter plot
    B. Interpret the meaning of the slope, b in this position
    C. Predict the mean audited newsstand sales for a magazine that reports the newsstand sales of 400,000.

    13.9 An agent for a residential real estate company in a large city would like to be able to predict the monthly rental cost for apartments, based on the size of the apartment, as defined by the square footage. A sample of 25 apartments in a particular residential neighborhood was selected, and the information gathered revealed the following:

    Rent($) Size(SquareFeet)
    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

    A. Construct a scatter plot.
    B. Use the least squares method to find the regression coefficients b(0) and b(1).
    C. Interpret the meaning of b(0) and b(1) in this problem.
    D. Predict the mean monthly rent for an apartment that has 1,000 square feet.
    E. Why would it not be appropriate to use the model to predict the monthly rent for apartments that have 500 square feet?
    F. Your friends Jim and Jennifer are considering signing a lease for an apartment in this residential neighborhood. They are trying to decide between two apartments, one with 1,000 square feet for a monthly rent of $1,275 and with the other 1,200 square feet for a monthly rent of $1,425. What would you recommend to the based on (a) through (d)?

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    https://brainmass.com/statistics/scatter-plot/scatter-plot-and-linear-regression-equation-analysis-282529

    Solution Summary

    For the given data, scatter plot togather with the estimated regression eqation is obtained. Interpretation estimated egression coefficient are given and the estimated regression equation is used for prediction. Detailed calculations are provided in the Excel file.

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