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.

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Definitions:

Interest Rate

The percentage at which interest is charged or paid on borrowed or saved money, often influencing economic activity.

Time Preference

An individual's preference for receiving goods or services sooner rather than later, reflecting the value of future goods as compared to present goods.

Money Rate

Typically refers to the interest rate, which is the cost of borrowing money, or the return on investing money, expressed as a percentage.

Real Rate

The interest rate adjusted for inflation, reflecting the real cost of funds to the borrower and the real yield to the lender.