Suppose you're running a multiple regression of Home Prices on five different treatment variables including number of bedrooms, number of bathrooms, total square feet, total lot size, and garage size, where all the treatment variables have been standardized (i.e., Which condition transformed to have a mean of zero and standard deviation equal to 1). Which conditions about the multiple regression must hold?
A. Correlation between the residuals and home price equals 0.
B. Intercept for the multiple linear regression equals the sample average home price.
C. Correlation between each of the treatment variables equals 1.
D. Correlation between each of the treatment variables equals 0.
Answer: B
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