A Real Estate Analyst Believes That the Three Main Factors

Multiple Choice

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 as Rent = β₀ + β₁Bedroom + β₂Bath + β₃Sqft + ε. The following ANOVA table shows a portion of the regression results. The slope coefficient for Bedroom indicates that, holding other explanatory variables constant, ________.

A) for each additional bedroom the rent is predicted to increase by $226
B) for each additional bedroom the rent is predicted to increase by $89
C) for each additional bedroom the rent is predicted to increase by $300
D) for each additional bedroom the rent is predicted to increase by $0.20