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: Rent = β₀ + β₁ Bedroom + β₂ Bath + β₃Sqft + ε.The following table shows a portion of the regression results. Which of the following are the hypotheses to test if the explanatory variables Bath and Sqft are jointly significant in explaining Rent?

A) H₀:β₂ = β₃ = 0;H_A: both of the coefficients are nonzero.
B) H₀:β₂ = β₃ = 0;H_A: at least one of the coefficients is zero.
C) H₀:β₂ = β₃ = 0;H_A: at least one of the coefficients is nonzero.
D) H₀:β₂ = β₃ = 0;H_A: both of the coefficients are zero.