Use the following information to solve problem # 39 & 40 A real estate analyst b

Question

Use the following information to solve problem # 39 & 40

A real estate analyst believes that the three main factors that influence an apartment

39. When testing whether Bed is significant at the 5% level, she: a. Rejects H0: beta 1 = 0, and concludes that the number of bedrooms significantly influences rent. b. Does not reject H0: beta 1 = 0, and concludes that the number of bedrooms significantly influences rent. c. Rejects H0: beta 1 = 0, and concludes that the number of bedrooms does not significantly influence rent. d. Does not reject H0: beta 1 = 0, and concludes that the number of bedrooms does not significantly influence rent. 40. When testing whether Bath is significant at the 5% level, she: a. Rejects H0: beta 2 = 0, and concludes that the number of bathrooms significantly influences rent. b. Does not reject H0: beta 2 = 0, and concludes that the number of bathrooms significantly influences rent. C. Rejects H0: beta 2 = 0, and concludes that the number of bathrooms does not significantly influence rent. d. Does not reject H0: beta 2 = 0, and concludes that the number of bathrooms does not significantly influence rent.

Explanation / Answer

39. (a) Rejects Ho: beta1=0 and concludes that number of bedrooms significantly influences rent

For bed Pvalue=0.0010;Significance level=0.05

Since Pvalue<Significance Level, we reject the null hypothesis, i.e, number of bedrooms doesn't influence an apartment's rent.

40. d. Does not reject H0:beta2=0 and concludes that number of bathrooms doesn't significantly influence rent.

For Bath P value=0.1195; significance level=0.05

Since Pvalue>Significance Level, we fail to reject null hypothesis,i.e,number of bath doesn't influences apartment rent.

Related Questions

Navigate

• Browse (All)
• Browse U
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.