Exhibit 15-8

question 97

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 Bath and Sqft are jointly significant,the p-value associated with the test is 0.0039.At the 5% significance level,she

• A)Rejects H₀,and concludes that neither of the explanatory variables is significant in explaining Rent.
• B)Does not reject H₀,and concludes that neither of the explanatory variables is significant in explaining Rent.
• C)Rejects H₀,and concludes that at least one of the explanatory variables,Bath and/or Sqft,is significant in explaining Rent.
• D)Does not reject H₀,and concludes that at least one of the explanatory variables,Bath and/or Sqft,is significant in explaining Rent.

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Definitions:

Household Income

The combined gross income of all members of a household who are 15 years old and older, regardless of their relationship to each other.

Poverty

A state of having insufficient financial resources to meet basic living expenses such as food, shelter, and clothing.

Family of Four

A nuclear family unit consisting of two adults and two children, regarded as a common social unit in many cultures.

Childhood Poverty

Childhood poverty refers to the state of children living below the poverty line, affecting their well-being, education, and development.