A Real Estate Analyst Believes That the Three Main Factors

question 117

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 Bath is significant at the 5% significance level,she ___________________________________________________________________.

• A) rejects H₀:β₂ = 0,and concludes that the number of bathrooms significantly influences rent
• B) does not reject H₀:β₂ = 0,and concludes that the number of bathrooms significantly influences rent
• C) rejects H₀:β₂ = 0,and concludes that the number of bathrooms does not significantly influence rent
• D) does not reject H₀:β₂ = 0,and concludes that the number of bathrooms does not significantly influence rent.

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Definitions:

Placebo

A harmless pill, medicine, or procedure prescribed more for the psychological benefit to the patient than for any physiological effect.

Dependent Variable

The variable in an experiment that is expected to change in response to manipulations of the independent variable.

Low-Carbohydrate Diets

Dietary programs that restrict carbohydrate intake, typically to promote weight loss or manage certain medical conditions.

Weight Loss

The process of losing body weight, typically by following a regimen of diet, exercise, or a combination of both.