A Real Estate Analyst Believes That the Three Main Factors

question 2

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 the explanatory variables Bath and Sqft are jointly significant, the p-value associated with the test is 0.0039. At the 5% significance level, she ________.

• A) rejects H₀, and cannot conclude that at least one of the explanatory variables, Bath and/or Sqft, is significant in explaining Rent
• B) does not reject H₀, and concludes that at least one of the explanatory variables, Bath and/or Sqft, is significant in explaining Rent
• C) rejects H₀, and concludes that at least one of the explanatory variables, Bath and/or Sqft, is significant in explaining Rent
• D) does not reject H₀, and cannot conclude that at least one of the explanatory variables, Bath and/or Sqft, is significant in explaining Rent

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Definitions:

Moral Dilemmas

Situations in which a decision must be made between two or more actions that are ethical but mutually exclusive.

Kantian Moral Theory

A philosophical approach to ethics that emphasizes duty, rationality, and the categorical imperative as foundational principles of moral action.

Deontological Evaluation

An ethical assessment based on the principle that the morality of an action is based on its adherence to rules or duties, regardless of the outcomes.

Ethical Dilemma

A situation where one must make a decision between two or more morally correct actions that cannot both be undertaken.