A Real Estate Analyst Believes That the Three Main Factors

question 81

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 are the hypotheses to test if the explanatory variables Bath and Sqft are jointly significant in explaining Rent?

• A) H₀: β₂ = β₃ = 0; H_A: both of the coefficients are nonzero.
• B) H₀: β₂ = β₃ = 0; H_A: at least one of the coefficients is zero.
• C) H₀: β₂ = β₃ = 0; H_A: at least one of the coefficients is nonzero.
• D) H₀: β₂ = β₃ = 0; H_A: both of the coefficients are zero.

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Definitions:

Subjects' Awareness

The extent to which individuals are cognizant of or conscious about particular subjects, events, or conditions.

Quasi-Experimental Design

A research strategy that attempts to estimate the causal impact of an intervention without random assignment to treatment or control groups.

Correlational Design

A research method that examines the relationships between variables to identify patterns and predict outcomes without implying causation.

Attractive Waiters

The concept that physically appealing servers may influence customers' dining experiences and perceptions of the service quality.