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Exhibit 15-8

Question 86

Multiple Choice

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: 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 (x<sub>1</sub>) ,the number of bathrooms (x<sub>2</sub>) ,and its square footage (x<sub>3</sub>) .She estimates the following model: .The following table shows a portion of the regression results. Refer to Exhibit 15-8.When testing whether the explanatory variables are jointly significant at the 5% level,she A) Rejects H<sub>0</sub>,and concludes that the explanatory variables are jointly significant. B) Does not reject H<sub>0</sub>,and concludes that the explanatory variables are jointly significant. C) Rejects H<sub>0</sub>,and concludes that the explanatory variables are not jointly significant. D) Does not reject H<sub>0</sub>,and concludes that the explanatory variables are not jointly significant. .The following table shows a portion of the regression results. 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 (x<sub>1</sub>) ,the number of bathrooms (x<sub>2</sub>) ,and its square footage (x<sub>3</sub>) .She estimates the following model: .The following table shows a portion of the regression results. Refer to Exhibit 15-8.When testing whether the explanatory variables are jointly significant at the 5% level,she A) Rejects H<sub>0</sub>,and concludes that the explanatory variables are jointly significant. B) Does not reject H<sub>0</sub>,and concludes that the explanatory variables are jointly significant. C) Rejects H<sub>0</sub>,and concludes that the explanatory variables are not jointly significant. D) Does not reject H<sub>0</sub>,and concludes that the explanatory variables are not jointly significant. Refer to Exhibit 15-8.When testing whether the explanatory variables are jointly significant at the 5% level,she


A) Rejects H0,and concludes that the explanatory variables are jointly significant.
B) Does not reject H0,and concludes that the explanatory variables are jointly significant.
C) Rejects H0,and concludes that the explanatory variables are not jointly significant.
D) Does not reject H0,and concludes that the explanatory variables are not jointly significant.

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