A landscaping company has collected data on home values (in thousands of $) and expenditures (in thousands of $) on landscaping with the hope of developing a predictive model to help market to potential new clients. Suppose the following table represents data for 14 households.
Home Value ($1,000) Landscaping Expenditures ($1,000)
243 8.2
322 10.9
199 12.1
340 16.3
300 15.7
400 18.8
800 23.5
200 9.5
522 17.5
548 22.0
436 12.2
463 13.5
635 17.8
357 13.8
Use the least squares method to develop the estimated regression equation. (Let x = home value (in thousands of $), and let y = landscaping expenditures (in thousands of $). Round your numerical values to five decimal places.)
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(d) For every additional $1,000 in home value, estimate how much additional will be spent (in $) on landscaping. (Round your answer to the nearest cent.) $
(e) Use the equation estimated in part (c) to predict the landscaping expenditures (in $) for a home valued at $275,000. (Round your answer to the nearest dollar.) $