A Real Estate Analyst Believes That the Three Main Factors

question 89

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 + β₁ Bedroom + β₂ Bath + β₃Sqft + ε.The following table shows a portion of the regression results. When testing whether Bedroom is significant at the 5% significance level,she ___________________________________________________________________.

• A) rejects H₀:β₁ = 0,and concludes that the number of bedrooms significantly influences rent
• B) does not reject H₀:β₁ = 0,and concludes that the number of bedrooms significantly influences rent
• C) rejects H₀:β₁ = 0,and concludes that the number of bedrooms does not significantly influence rent
• D) does not reject H₀:β₁ = 0,and concludes that the number of bedrooms does not significantly influence rent