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. Which of the following would be the rent for a 1,000-square-foot apartment that has two bedrooms and two bathrooms?

Question

Quizplus · Accepted Answer

From the given regression equation, we have:
Rent = β0 + β1Bedroom + β2Bath + β3Sqft + ε

Plugging in the values, we get:
Rent = 420 + (350 x 2) + (200 x 2) + (0.6 x 1000) = $1,130

Therefore, the rent for a 1,000-square-foot apartment that has two bedrooms and two bathrooms would be $1,130.

An Real Estate Analyst Believes That the Three Main Factors