Question: Question 6.5 reported the following regression (where standard errors have been added): a. Is the coefficient on BDR statistically significantly different from zero? b. Typically

Question 6.5 reported the following regression (where standard errors have been added):

a. Is the coefficient on BDR statistically significantly different from zero?
b. Typically five-bedroom houses sell for much more than two-bedroom houses. Is this consistent with your answer to (a) and with the regression more generally?
c. A homeowner purchases 2000 square feet from an adjacent lot. Construct a 99% confident interval for the change in the value of her house.
d. Lot size is measured in square feet. Do you think that another scale might be more appropriate? Why or why not?
e. The F-statistic for omitting BDR and Age from the regression is
F = 0.08. Are the coefficients on BDR and Age statistically different from zero at the 10% level?

Price = 119.2 + 0.485BDR + 23.4Bath + 0.156Hsize + 0.002Lsize (23.9) (2.61) (8.94) (0.0) (0.00048) +0.090Age -488Poor.R 0.72, SER 415 (0.3) (10.5)

Step by Step Solution

★★★★★

3.39 Rating (155 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

a The t statistic is Therefore the coefficient on BDR is not statistically significantl... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

909-M-S-L-R (8229).docx

120 KBs Word File

Students Have Also Explored These Related Statistics Questions!

The following regression was fitted by least squares to 32 annual observations on time-series data: where yt = quantity of U.S. wheat exported x1t = price of U.S. wheat on world market x2t = quantity...

The following regression was fitted by least squares to 30 annual observations on time-series data: where yt = number of business failures x1t = rate of unemployment x2t = short-term interest rate...

The following regression model was fitted to data on 60 U.S. female amateur golfers: where y` = winnings per tournament in dollars x1 = average length of drive in yards x2 = percentage times drive...

Exercise 2. Stock and Watson (2019) Exercise 7.7 (Variation) Question 6.5 reported the following regression (where standard errors have been added): Price =110(22) + 0.600(0.15) BDR + 20(7.10)Bath +...

Question 6.5 reported the following regression (where standard errors have been added): Price 119.2+0.485BDR+ 23.4Bath + 0.156Hsize + 0.002 Lsize (8.94) (0.011) (0.00048) (23.9) (2.61) +0.090Age...

7.7 Question 6.5 reported the following regression (where standard errors have been added): a. Is the coefficient on BDR statistically significantly different from zero? b. Typically four-bedroom...

7.7 Question 6.5 reported the following regression (where standard errors have been added): Price = 109.7 + 0.567BDR + 26.9Bath + 0.239Hsize + 0.005Lsize 122.12 11.232 19.762 10.0212 10.000722 +...

condition of the house is reported as "poor." An estimated regression yields:...

Data were collected from a random sample of 380 home sales from a community in 2003. Let Price denote the selling price (in $1,000), BDR denote the number of bedrooms, Bath denote the number of...

Question 4 (10pts) Data were collected from a random sample of 220 homes. Let Price denotes the selling price (in $1000),BDR denotes the number of bedrooms, Bath denotes the number of bathrooms,...

Is the corporate tax schedule progressive? Why or why not?

A spherical shell is cut into two pieces along a chord as shown in the figure. P is a point on the plane of the chord. The gravitational field at P due to the upper part is I1 and that due to the...

Discuss how today's "fire loads" in buildings contribute to the rate of fire spread during structure fires

5. Beanstalks Beanstalk Clubs are social clubs for very tall people. To join, a man must be over 62 tall, and a woman over 510. Heights of adults are approximately Normally distributed, with mean...

We wish to better understand the factors that contribute to a student's favorable overall evaluation of an instructor. The data set TeachingEval_HW.dta contains average faculty evaluation scores,...

How do young people respond to economic conditions? Are they more likely to pursue public service when jobs are scarce? To get at this question, we'll analyze data in PeaceCorps.dta, which contains...

Researchers have long been interested in the relationship between economic factors and presidential elections. The PresApproval.dta data set includes data on presidential approval polls and...

You have just purchased a new warehouse. To finance the purchase, you've arranged for a 3 0 - year mortgage loan for 8 0 percent of the $ 2 , 9 0 0 , 0 0 0 purchase price. The monthly payment on this...

Chandler Corporation has 1 million shares outstanding. The current price per share is $20. If the company decides to use $2 million dollars to repurchase shares at the market price, the company will...

You'd like to purchase a new car after you graduate and start working. The car that you would really like costs $34,500. You are currently earning a rate of 4.92% in an investment account. If you...