Suppose You Have the Following Regression Results from a Regression

question 23

Multiple Choice

Suppose you have the following regression results from a regression of home prices on house attributes for a random sample of house transactions: $$\begin{array} { | l | r | r | } \hline & \text { Coefficierts } & \text { Stardard Error } \\\hline \text { Iratercept } & 16310.0 & 4114.5 \\\hline \text { Nurrber of Bedroorrs } & 7295.3 & 1399 . \\\hline \text { Number of Bathroorrs } & 23473.0 & 4032.0 \\\hline\end{array}$$ Given these results which additional condition would be sufficient to ensure number of bathrooms satisfies the "primary criteria" for a good control variable in attempting to identify the causal effect of number of bedrooms on house prices?

• A) The number of bathrooms is correlated with house prices.
• B) The number of bedrooms is correlated with house prices.
• C) The number of bathrooms is correlated with the number of bedrooms.
• D) The p-value for the number of bedrooms.

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Definitions:

Papillary Layer

The uppermost layer of the dermis, directly underneath the epidermis, rich in capillaries and nerve endings.

Dermis

The thick, inner layer of skin beneath the epidermis, containing nerve endings, sweat glands, hair follicles, and blood vessels.

Epidermis

The skin's external layer, which acts as a waterproof shield and determines our skin color.

Near Point

The closest distance at which an object can be seen clearly by the eye, a measure of the eye's accommodation ability.