log () = 4.96 + 0.0004 0.06 0.22 + 0.09.

(0.168) (0.00004) (0.057) (0.206)

n=88= 0.612

(0.061)

in which:

price= price of houses in thousands of dollars;

sqrft= square footage of houses;

bdrms= number of bedrooms;

colonial= 1 if the house is of colonial architecture, and 0 if not;sqrft.colonial= interaction variable equal tosqrft*colonial.

1. Provide an appropriate interpretation for each partial slope in the above estimated equation. (4 pts)
2. Test the individual significance of each coefficient estimate from the above estimated equation at 5%
3. significance level. (4pts)
4. With a 5% significance level, test the joint significance of all partial slopes in the above estimated equation.
5. (1 pt)
6. Calculate the estimated effect of three additional bedrooms of 200 square feet each, on the price of:
7. i) a colonial house; ii) a non-colonial house. (2 pts)