An real estate analyst believes that the three main factors that influence an ap

Question

An 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 as Rent = 0 + 1Bedroom + 2Bath + 3Sqft + . The following ANOVA table shows a portion of the regression results.

The slope coefficient attached to Bedroom indicates that, holding other explanatory variables constant, ________.

df SS MS F   Regression 3 5,694,717 1,898,239 50.88   Residual 36 1,343,176 37,310   Total 39 7,037,893 Coefficients Standard Error t-stat p-value   Intercept 300 84.0 3.57 0.001 Bedroom 226 60.3 3.75 0.0006 Bath 89 55.9 1.59 0.1195 Sq ft 0.2 0.09 2.22 0.0276

Explanation / Answer

coefficient of the bedroom is 226

so an additional bedroom increases rent on average by $226

option C is correct one

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.