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a real estate agent relates a story about two almost identical real estate properties with the only difference being that one has 40% of the

a real estate agent relates a story about two almost identical real estate properties with the only difference being that one has 40% of the area devoted to the office space and the other has no office space at all. The agent claims that the property without any office space has a higher monthly rental rate than the one with 40% of square footage devoted to the office space. Based on three regression models provided (below), should you be surprised? explain your reasoning

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Variables: Regression Outputs for Question 5 DumOffice: dummy variable that is equal to 1 if more than 25% of the area (measured in square feet) Inv Dist: is devoted to office space and is equal to 0 otherwise. InvYrs: 1/(14 distance in minutes from the building to the nearest freeway entrance). Park: 1/(1+ the age of the building in years), Park It: the number of on-site parking spaces, Kent ft: Park/SquareFeet, the monthly rent expressed in dollars per square foot. SquareFeet: the building size in square feet, TotalRent the monthly rent expressed in dollars (i.c., SquareFeet*Rent f()- MODEL A Totalkent, 5 Variables Dependent Variable: Independent Variables: DumOilre Indik Park SquareFeet Raqwar Ad IRSqr ad Err. 0.9137 0.ASn Summary Table CorH -13713'5 1843.324 408.108 3.705 5419 803 3220.743 1.1812 Indy'ss 1709.034 958 355 1.730 Pax 27 572 12.604 2012 0.047 0.429 0.024 17 250 MODEL B MODEL C TotalRent, 3 Variables Rent/l', 2 Variables Dependent Variable: Total Reid Dependent Variable: Independent Variables: . DumOffice Park Sellama Foot Inchaindont Varkablog: DummOllios Park_it Regression Stats tos AMissing Ad FAT adEn Hiding R Squire 1643 760 0.120 52 U.830 Summary Table Summary Table Cool HET ESLaL Variable Intercept 0.406 IT.202 mancup -356.401 -0712 3. BALT 1708.858 280.178 3 643 Dimomce Park_#1 Park 31. 135 12.728 SquareFeet 0.417 0 024 17487 Forscarlet Runt FI Fark n Park Fi Ster Fer LumpEd Purk SquaraFort TotalRant Full 040G 50 115000 BAR 246 1093 437

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