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:

Segment Profit Margin Analysis

The process of evaluating the profitability of different segments or divisions within a company.

Segment Liabilities

The liabilities related to a single reportable segment of a business, as opposed to the entire organization.

Total Segment Expenses

The combined costs incurred by a specific segment of a business within a given period, including both direct and allocated expenses.

Consolidated Expenses

Expenses that arise from combining the financial statements of a parent company with its subsidiaries, presenting the financial performance as if they were a single entity.