David's Landscaping 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 marketing to
potential new clients. Data for 14 households may be found in the
file Landscape.
Home
Value
($1,000)
Landscaping
Expenditures
($1,000)
242
8.1
321
10.8
198
12.2
340
16.2
300
15.6
400
18.9
800
23.5
200
9.5
521
17.5
547
22.0
437
12.1
464
13.5
635
17.9
356
13.9
(A)
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.)
ŷ =
(b)
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.)
(c)
Use the equation estimated in part (a) to predict the
landscaping expenditures (in $) for a home valued at $575,000.
(Round your answer to the nearest dollar.)