Chapter 14.2, Problem 9E

Estimating Landscaping Expenditures. 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.

1. a. Develop a scatter diagram with home value as the independent variable.
2. b. What does the scatter plot developed in part (a) indicate about the relationship between the two variables?
3. c. Use the least squares method to develop the estimated regression equation.
4. d. For every additional $1000 in home value, estimate how much additional will be spent on landscaping.
5. e. Use the equation estimated in part (c) to predict the landscaping expenditures for a home valued at $575,000.