Output 4.1 reports sigma = 0.159 for Model 1. What does this indicate?

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Answer

Rent changes by about 16% for every extra kilometre from the central business district.

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The model explains 15.9% of the variation in the logarithm of weekly rent in the data.

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Rents typically differ from the model's predicted rent by $0.159, after accounting for the predictors.

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Rents typically differ from the predicted rent by about 16%, after accounting for the predictors.

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About 16% of the apartments in the sample have a rent above the model's prediction.

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