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 coefficient of determination indicates that __________. A) 19.08% of the variation in Rent is explained by the variation in the explanatory variables B) 19.08% of the variation in the explanatory variables is explained by the variation in Rent C) 80.92% of the variation in Rent is explained by the variation in the explanatory variables D) 80.92% of the variation in the explanatory variables is explained by the variation in Rent

Question

Quizplus · Accepted Answer

The coefficient of determination (R-squared) indicates the proportion of variation in the dependent variable (Rent) that is explained by the variation in the independent variables (bedroom, bathroom, and sqft). Therefore, C) 80.92% of the variation in Rent is explained by the variation in the explanatory variables is the correct answer, as indicated by the R-squared value of 0.8092 in the ANOVA table.

An Real Estate Analyst Believes That the Three Main Factors