A Real Estate Analyst Believes That the Three Main Factors

question 112

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 the explanatory variables Bath and Sq ft 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 Sq ft,is significant in explaining Rent
• D) does not reject H₀,and concludes that at least one of the explanatory variables,Bath and/or Sq ft,is significant in explaining Rent

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Definitions:

Bimolecular

A reaction mechanism involving the collision and interaction of two reactant molecules to form products.

Second Order

Relates to a chemical reaction or process that is proportional to the product of two reactant concentrations, or to the square of the concentration of a single reactant.

Exothermic

Describes a chemical reaction that releases energy in the form of heat.

Transition States

High-energy states through which reactants must pass for a chemical reaction to occur, representing a maximum in energy on the reaction path between reactants and products.