Exhibit 15-8.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: .The following table shows a portion of the regression results. Refer to Exhibit 15-8.Which of the following are the hypotheses to test if the explanatory variables Bath and Sqft are jointly significant in explaining Rent? A) : Both of the coefficients are nonzero B) : At least one of the coefficients is zero C) : At least one of the coefficients is nonzero

Question

Quizplus · Accepted Answer

The hypotheses to test if the explanatory variables Bath and Sqft are jointly significant in explaining Rent are that at least one of the coefficients is nonzero. This is represented by choice C. Options A and D are incorrect because they are too specific, while option B is incorrect because it states that at least one coefficient is zero, which is the opposite of what we want to test.