THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION

question 2

Multiple Choice

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
A real estate broker is interested in identifying the factors that determine the price of a house.She wants to run the following regression: Y = β₀ + β₁X₁ + β₂X₂ + β₃X₃ + ε where Y = price of the house in $1,000s,X₁ = number of bedrooms,X₂ = square footage of living space,and X₃ = number of miles from the beach.Taking a sample of 30 houses,the broker runs a multiple regression and gets the following results:
= 123.2 + 4.59x₁ + 0.125x₂ - 6.04x₃,
= 103.2,
= 2.13,
= 0.062,
= 4.17,R² = 0.47,and
= 0.45 (adjusted) .
-What should the null and alternative hypotheses be for β₂?

• A)H₀ : β₂ = 0, H₁ : β₂ > 0
• B)H₀ : β₂ ≠ 0, H₁ : β₂ = 0
• C)H₀ : β₂ > 0, H₁ : β₂ < 0
• D)H₀ : β₂ = 0, H₁ : β₂ ≠ 0

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Definitions:

Economic Security

The condition of having stable income or other resources to support a standard of living now and in the foreseeable future.

Material Resources

Tangible assets and resources such as cash, real estate, and personal property that can be used to achieve goals or meet needs.

Family's Function

The various roles and responsibilities families perform, such as emotional support, socialization, and providing for members' physical needs, contributing to the well-being and continuation of society.

Bigamy

Marrying a second person while a first marriage is still legal.