Exhibit 15-8

question 108

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 Bed is significant at the 5% level,she

• A)Rejects ,and concludes that the number of bedrooms significantly influences rent.
• B)Does not reject ,and concludes that the number of bedrooms significantly influences rent.
• C)Rejects ,and concludes that the number of bedrooms does not significantly influence rent.
• D)Does not reject

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Definitions:

Specific Amount

A precise quantity defined or required in a given context, not subject to variation.

Time

A continuous, irreversible sequence in which events occur from the past through the present to the future.

Compression Ratio

The ratio of the volume of its combustion chamber from its largest capacity to its smallest capacity, used in internal combustion engines.

Cylinder

A chamber within an engine where a piston moves to compress fuel and air, creating the combustion needed for power.