Exhibit 15-8

question 86

Multiple Choice

Exhibit 15-8.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: .The following table shows a portion of the regression results. Refer to Exhibit 15-8.When testing whether the explanatory variables are jointly significant at the 5% level,she

• A)Rejects H₀,and concludes that the explanatory variables are jointly significant.
• B)Does not reject H₀,and concludes that the explanatory variables are jointly significant.
• C)Rejects H₀,and concludes that the explanatory variables are not jointly significant.
• D)Does not reject H₀,and concludes that the explanatory variables are not jointly significant.

---

Definitions:

Social Exchange Theory

A sociological and psychological theory that suggests human interactions and relationships are formed based on a cost-benefit analysis by the involved parties.

Network Analysis

A research method in sociology and other disciplines that studies the patterns of relationships among entities or nodes in a network.

Project Costs

The total expenditures incurred in the planning, execution, and completion of a project, including materials, labor, and overhead expenses.

Dependents

Individuals who rely on others for financial support or care, typically within the context of a family or a close relationship.