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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
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 as Rent = 0g + 61 Bedroom + 62 Bath + 83 Soft + . The following ANOVA table shows a portion of the regression results. 55 MS F Regression 3 5, 694, 766 1, 898, 255 50. 87 Residual 36 1, 343, 266 37, 313 Total 39 7,038,032 Coefficients Standard Error t-stat p-value Intercept 293 99.8 2.96 0.0826 Bedroom 223 59.8 3.73 3.0809 Bath 103 56.7 1.82 3.1214 Soft 9.4 8.1 4 9.0266 The slope coefficient for Bedroom indicates that, holding other explanatory variables constant
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