THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION

question 113

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 β₃?

• A)H₀ : β₃ = 0,H₁ : β₃ > 0
• B)H₀ : β₃ = 0,H₁ : β₃ < 0
• C)H₀ : β₃ ≠ 0, H₁ : β₃ = 0
• D)H₀ : β₃ < 0,H₁ : β₃ > 0

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Definitions:

Requirements

Conditions or capacities needed by a system or product to solve a problem or achieve an objective.

Plaintiff

The party who initiates a lawsuit by filing a complaint with the court, alleging harm or wrongdoing by the defendant and seeking legal relief.

Superseding Cause

An intervening cause that alters the natural sequence of events and relieves the original party from liability in a legal context.

Unforeseeable

Situations or events that cannot be predicted or expected with any reasonable degree of certainty.