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 = β₀ + β₁ Bedroom + β₂ Bath + β₃ Sqft + ε.The following ANOVA table shows a portion of the regression results. The slope coefficient attached to Bedroom indicates that,holding other explanatory variables constant,____________. A) an additional bedroom increases rent,on average,by $226 B) an additional bedroom increases rent,on average,by $526 C) an additional $226 in rent will lead to an additional bedroom D) an additional $526 in rent will lead to an additional bedroom

Question

Quizplus · Accepted Answer

The slope coefficient attached to Bedroom ($226) indicates that,holding other explanatory variables constant, an additional bedroom increases rent,on average, by $226.

An Real Estate Analyst Believes That the Three Main Factors