A real estate agent wishes to estimate the monthly rental for apartments based on the size (square feet) and location of the apartments. She chose the model y-Po + β1 x1 + β2 x2 + ε, where x1 represents the square footage of the apartment and 1 if located in town center X2 . This linear regression model was fitted to a sample 0 if not located in town center of size 50 to produce the regression equation below. Complete parts a through c y 175+ 1.2x1 +400x2 a. Predict the average monthly rent for an apartment located in the town center that has 1,750 square feet S(Simplify your answer.)b. Predict the average monthly rent for an apartment located in the suburbs that has 1,100 square feet. $ 1455 (Simplify your answer.) c. Interpret b, in the context of this exercise. Based on these data, and holding the________ constant, it is estimated that an apartment is worth $ more if it located in the town center.

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Answer:

$2675 ; $1495 ; $400

Step-by-step explanation:

Given the regression model :

y = 175+ 1.2x1 +400x2

y = average monthly rent

x1 = square footage of apartment

x2 = location ; 1 if located in town center ; 0 if otherwise.

1.)

Predict average monthly rent for an apartment located in town center and has 1750 ft²

y = 175+ 1.2(1750) + 400(1)

y = 175 + 2100 + 400

y = $2675

11.) average monthly rent for an apartment located in the suburbs that has 1,100 square feet.

y = 175 + 1.2(1100) + 400(0)

y = 175 + 1320 + 0

y = $1495

111) An apartment is worth $400 more if located in town center (slope of x2)

An apartment is worth 400 dollars more if located in the center of the town than the located in the suburbs.

What is the linear system?

A Linear system is a system in which the degree of the variable in the equation is one. It may contain one, two, or more two variables.

The given linear regression model is shown below.

[tex]\rm y = 175 + 1.2 x_1 + 400 x_2[/tex]

y = Average monthly rent

x₁ = square footage of apartment

x₂ = location

1.  Predict the average monthly rent for an apartment located in the center of town and has 1750 square feet.

y = 175 + 1.2 × 1750 + 400 × 1

y = 175 + 2100 + 400

y = $2675

2.  The average monthly rent for an apartment located in the suburbs has 1100 square feet.

y = 175 + 1.2 × 1100 + 400 × 0

y = 175 + 1320

y = $1495

An apartment is worth 400 dollars more if located in the center of the town than the located in the suburbs.

More about the linear system link is given below.

https://brainly.com/question/20379472