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

right choice is D. an additional bedroom increases rent, on average, by $226

this $226 is slope coefficient attached to bedroom for response variable rent, so if other explanatory variables fixed then this much amont of rent will be inreased if one bed room is increased and vice-versa

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