In this exercise we will use the data on house prices (y) and square feet (x), that we used earlier. You are assigned 10 houses based on the first letter of your family name. Family name begins with Your assigned houses A to C 15-24 D to H 35-44 I to L 47-56 M to P 68-77 Q to Y 88-97 2. Using an Excel spreadsheet calculate the following: 1. I= j = Consider the regression equation y, = B.+B,x, +u, i = 1,..., N. The slope coefficient can be derived as B, Xxy-Nxy and the intercept is derived **?-N7? B. = 1-B. What are the two estimators equal to? as as 3. 4. B.=j-Br. What are the two estimators equal to? B = B. Using your estimates, estimate the price of a house that has square feet equal to the mean Your answer Form another column in your spreadsheet and estimate the price of each house given the square feet in the house. The estimates are found as 9, = + B,x. In another column of your spreadsheet calculate the residuals for each observation: = y; - , and then in another column calculate SSR The variance of the residuals is given as o? where SSR-u. Determine N-2 the following: SSR = 02= You have already imported the house price square feet data into Gretl in a previous HW. Restrict the sample to your 10 chosen houses and validate your answer in part 2. Do this by printing out the model results. 5. 6. 7. s MacBook Air FS FO F7 FB F10 FO In this exercise we will use the data on house prices (y) and square feet (x), that we used earlier. You are assigned 10 houses based on the first letter of your family name. Family name begins with Your assigned houses A to C 15-24 D to H 35-44 I to L 47-56 M to P 68-77 Q to Y 88-97 2. Using an Excel spreadsheet calculate the following: 1. I= j = Consider the regression equation y, = B.+B,x, +u, i = 1,..., N. The slope coefficient can be derived as B, Xxy-Nxy and the intercept is derived **?-N7? B. = 1-B. What are the two estimators equal to? as as 3. 4. B.=j-Br. What are the two estimators equal to? B = B. Using your estimates, estimate the price of a house that has square feet equal to the mean Your answer Form another column in your spreadsheet and estimate the price of each house given the square feet in the house. The estimates are found as 9, = + B,x. In another column of your spreadsheet calculate the residuals for each observation: = y; - , and then in another column calculate SSR The variance of the residuals is given as o? where SSR-u. Determine N-2 the following: SSR = 02= You have already imported the house price square feet data into Gretl in a previous HW. Restrict the sample to your 10 chosen houses and validate your answer in part 2. Do this by printing out the model results. 5. 6. 7. s MacBook Air FS FO F7 FB F10 FO