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.
df
SS
MS
F
Significance F
Regression
3
5,694,717
1,898,239
50.88
4.99E-13
Residual
36
1,343,176
37,310
Total
39
7,037,893
Coefficients
Standard Error
t-stat
p-value
Lower 95%
Upper 95%
Intercept
300
84.0
3.57
0.0010
130.03
470.79
Bedroom
226
60.3
3.75
0.0006
103.45
348.17
Bath
89
55.9
1.59
0.1195
−24.24
202.77
Sq ft
0.2
0.09
2.22
0.0276
0.024
0.39
When testing whether the explanatory variables jointly influence
the response variable, the null hypothesis is ________.
A. H0: β0 + β1 + β2 + β3 =
0
B. H0:β1 = β2 = β3 =
0
C. H0: β0 = β1 = β2 = β3 =
0
D. H0:β1 + β2 + β3 +
0
