A real estate broker is interested in identifying the factors that determine the price of a house. She wants to run the following regression: Y = 0 + 1X1 + 2X2 + 3X3 + where Y = price of the house in $1,000s, X1 = number of bedrooms, X2 = square footage of living space, and X3 = number of miles from the beach. Taking a sample of 30 houses, the broker runs a multiple regression and gets the following results: Y = 123.2 + 4.59x1 + 0.125x2 - 6.04x3, R2 = 0.47, and Adjusted R2 = 0.45 (103.2) (2.13) (0.062) (4.17)

How would you interpret the coefficient on x2?

Select one: a. We would expect to pay approximately an additional $1,000 for each additional square foot of living space.

b. The average square footage area of living space is 1,250 square feet. c. We would expect to pay, on average, an additional $125 for each additional square foot of living space, given that the number of bedrooms and the number of miles from the beach are held constant. d. We would expect to pay an additional $1,000 for each an additional 125 square foot of living space, given that the number of bedrooms and the number of miles from the beach are held constant.