Exhibit 14-8.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: .The following table shows a portion of the regression results. Refer to Exhibit 14-8.The slope coefficient attached to Bed 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 Bed is 226, which means that holding other explanatory variables constant, an additional bedroom increases the rent by $226 on average.