A Real Estate Analyst Believes That the Three Main Factors

question 18

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: Rent = β₀ + β₁Bedroom + β₂Bath + β₃Sqft + ε. The following table shows a portion of the regression results. When testing whether Bath is significant at the 5% significance level, she ________.

• A) rejects H₀: β₂ = 0, and concludes that the number of bathrooms significantly influences rent
• B) does not reject H₀: β₂ = 0, and concludes that the number of bathrooms significantly influences rent
• C) rejects H₀: β₂ = 0, and cannot conclude that the number of bathrooms significantly influence rent
• D) does not reject H₀: β₂ = 0, and cannot conclude that the number of bathrooms significantly influence rent.

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Definitions:

Thoughts

Mental processes involving reasoning, reflection, and contemplation, often part of conscious mental activities.

Canadian Psychological Association

The primary national organization for the science, practice, and education of psychology in Canada.

Psychology

The scientific study of the mind and behavior, including understanding mental functions, brain activities, and social interactions.

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