Question: C6.8 Use the data in HPRICE1.RAW this exercise. (i) Estimate the model price = Bo+ Blotsize + Basqrft + B,bdrms + u and report the
C6.8 Use the data in HPRICE1.RAW this exercise. (i) Estimate the model price = Bo+ Blotsize + Basqrft + B,bdrms + u and report the results in the usual form, including the standard error of the regression. Obtain predicted price, when we plug in lotsize = 10,000, sqrft 2,300, and bdrms = 4; round this price to the nearest dollar. (ii) Run a regression that allows you to put a 95% confidence interval around the predicted value in part (i). Note that your prediction will differ some- what due to rounding error. (iii) Let price" be the unknown future selling price of the house with the char- acteristics used in parts (i) and (ii). Find a 95% CI for price" and com- ment on the width of this confidence interval. EVID RO
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