A Real Estate Analyst Believes That the Three Main Factors

question 119

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. Which of the following are the hypotheses to test if the explanatory variables Bath and Sqft are jointly significant in explaining Rent?

• A) H₀:β₂ = β₃ = 0;H_A: both of the coefficients are nonzero.
• B) H₀:β₂ = β₃ = 0;H_A: at least one of the coefficients is zero.
• C) H₀:β₂ = β₃ = 0;H_A: at least one of the coefficients is nonzero.
• D) H₀:β₂ = β₃ = 0;H_A: both of the coefficients are zero.

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Definitions:

Values

Core beliefs or standards that guide and influence behavior and decision-making.

Terminal Values

Deeply held beliefs about the desired end-states of life, reflecting what individuals believe to be most important or fulfilling.

Instrumental Values

Core values that dictate how we behave in order to achieve our goals, such as honesty and ambition.

Tangible Values

The measurable and physical worth of an asset, product, or property, which can be quantitatively assessed or directly experienced.