A Real Estate Analyst Believes That the Three Main Factors

question 15

Multiple Choice

A real estate analyst believes that the three main factors that influence an apartment's rent in a college town are the number of bedrooms, the number of bathrooms, and the apartment's square footage. For 40 apartments, she collects data on the rent (y, in $) , the number of bedrooms (x₁) , the number of bathrooms (x₂) , and its square footage (x₃) . She estimates the following model as Rent = β₀ + β₁Bedroom + β₂Bath + β₃Sqft + ε. The following ANOVA table shows a portion of the regression results. The slope coefficient for Bedroom indicates that, holding other explanatory variables constant, ________.

• A) for each additional bedroom the rent is predicted to increase by $226
• B) for each additional bedroom the rent is predicted to increase by $89
• C) for each additional bedroom the rent is predicted to increase by $300
• D) for each additional bedroom the rent is predicted to increase by $0.20

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Definitions:

Insoluble

A characteristic of a substance that cannot dissolve effectively in a particular solvent.

Silver Acetate

A chemical compound with the formula AgC2H3O2, used in plating and as a photographic agent.

NaCl

Sodium chloride, commonly known as table salt, an ionic compound consisting of sodium and chloride ions.

AgCl

Silver chloride, a white crystalline solid that is photosensitive and less soluble in water.