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:

Functional Specialization

Functional specialization is the practice of organizing individuals or groups based on the specific functions or roles they perform within an organization.

Project Teams

Groups of individuals working collaboratively towards a common goal, often bringing together diverse skill sets and perspectives.

Matrix Structure

An organizational structure that combines two or more types of structures, typically functional and product-based, to leverage the benefits of both.

Organic Structures

An organizational form that is flexible, adaptive, and decentralized, facilitating responsiveness and creativity.