Refer to Computer Exercise C2 in Chapter 3. Now, use the log of the housing price as the dependent variable:

log1price2 5 b0 1 b1sqrft 1 b2bdrms 1 u.

(i) You are interested in estimating and obtaining a confidence interval for the percentage change in price when a 150-square-foot bedroom is added to a house. In decimal form, this is u1 5 150b1 1 b2. Use the data in HPRICE1 to estimate u1.

(ii) Write b2 in terms of u1 and b1 and plug this into the log(price) equation.

(iii) Use part (ii) to obtain a standard error for u^

2 and use this standard error to construct a 95%

confidence interval.