The platform wants to predict the weekly rent of a new apartment that is 8 km from the CBD and has parking, using Model 1 from Output 4.1. The analyst runs the code below, and reports: “The predicted weekly rent is $6.50, with a 95% prediction interval from $6.18 to $6.82.” Explain what has gone wrong and describe how the code should be changed.

new_apartment <- data.frame(distance_km = 8, parking = 1)
predict(model_1, new_apartment, interval = "prediction")

       fit      lwr      upr
1 6.497950 6.178661 6.817239