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 = B0 + 81 Bedroom + 82 Bath + 83 sqft + e. The following ANOVA table shows a portion of the regression results. df MS 3 5,694,727 1,898,242 Regression 50.88 Residual 36 1,343,171 37,310 Total 39 7,037,898 Coefficients Standard Error t-stat p-value Intercept 308 110.0 2.8 0.0010 Bedroom 248 60.8 4.08 0.0007 Bath 92 53.9 1.71 0.1192 Sqft 0.1 0.05 2 0.0277 The slope coefficient for Bedroom indicates that, holding other explanatory variables constant,

MATLAB: An Introduction with Applications
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Author:Amos Gilat
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for each additional bedroom the rent Is predicted to Increase by $248
for each additional bedroom the rent is predicted to Increase by $92
for each additional bedroom the rent is predicted to Increase by $308
for each additional bedroom the rent Is predicted to Increase by $0.10
Transcribed Image Text:Multiple Cholce for each additional bedroom the rent Is predicted to Increase by $248 for each additional bedroom the rent is predicted to Increase by $92 for each additional bedroom the rent is predicted to Increase by $308 for each additional bedroom the rent Is predicted to Increase by $0.10
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 = Bo + B1 Bedroom + 82 Bath + 83 Sqft + 2. The following ANOVA table shows a
portion of the regression results.
df
MS
Regression
3
5,694,727
1,898,242
50.88
Residual
36
1,343,171
37,310
Total
39
7,037,898
Coefficients
Standard Error
t-stat
p-value
Intercept
308
110.0
2.8
0.0010
Bedroom
248
60.8
4.08
0.0007
Bath
92
53.9
1.71
0.1192
Sqft
0.1
0.05
0.0277
The slope coefficient for Bedroom indicates that, holding other explanatory variables constant,
Transcribed Image Text: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 = Bo + B1 Bedroom + 82 Bath + 83 Sqft + 2. The following ANOVA table shows a portion of the regression results. df MS Regression 3 5,694,727 1,898,242 50.88 Residual 36 1,343,171 37,310 Total 39 7,037,898 Coefficients Standard Error t-stat p-value Intercept 308 110.0 2.8 0.0010 Bedroom 248 60.8 4.08 0.0007 Bath 92 53.9 1.71 0.1192 Sqft 0.1 0.05 0.0277 The slope coefficient for Bedroom indicates that, holding other explanatory variables constant,
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