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 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.