A Real Estate Analyst Believes That the Three Main Factors

question 19

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. Which of the following is the value of the test statistic for testing the joint significance of the linear regression model?

• A) 1.59
• B) 2.22
• C) 3.75
• D) 50.88

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Definitions:

Health Deteriorate

A condition where an individual's physical or mental well-being declines over time.

Income Beneficiary

The recipient of the interest or appreciation generated by a trust.

Trust Corpus

The principal or property held in a trust that generates income for the trust's beneficiaries.

Interest Generated

Refers to the amount of money earned on savings or investments over time, usually through interest rates applied to principal amounts.