Exhibit 14-8

Multiple Choice

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.