Question $1($A$)$

You have performed a simple linear regression model to understand the effect of Number of Bedrooms on House Price.

House Price is in Thousand $$$ and Number of Bedrooms is in number of bedrooms$$

$$

Coefficient

t$-$statistic

p$-$value

Intercept

$28\mathrm{.}77$

$6\mathrm{.}52$

$<0\mathrm{.}000***$

Number of Bedrooms

$13\mathrm{.}27$

$9\mathrm{.}18$

$<0\mathrm{.}000***$

How do you interpret the coefficient $13\mathrm{.}27$ of Number of Bedrooms? Select one from below:

Question $1$ options:

Increase in one bedroom will lead to about $$100$ increase in house price.

Increase in one bedroom will lead to about $$13\mathrm{.}27$ Thousands increase in house price.

Increase in ten bedrooms will lead to about $$13\mathrm{.}27$ Thousands increase in house price

Increase in $13\mathrm{.}27$ bedroom square foot will lead to about $$1$ Thousand increase in house price.