Question: Question 1 (Multiple Regression): We conduct a study to determine the determinants of house prices (in thousands of dollars) in Montreal. We run the

Question 1 (Multiple Regression): We conduct a study to determine the determinants

Question 1 (Multiple Regression): We conduct a study to determine the determinants of house prices (in thousands of dollars) in Montreal. We run the following multiple regression model: House prices o +31 (Area;) + 32 (Number of Bedrooms;) +33(Year of Construction;) + {i The explanatory variables are: (i) Area, a dummy variable (where Downtown = 1, and Other = 0); (ii) Number of Bedrooms; and (iii) Year of Construction. We obtain a sample of 100 observations. We obtained the following results: ANOVA df SS MS 1841.57 Regression 3 5523.709 Residual A 335.5119 3.505333 Total 99 5861.221 Coefficients 39.75415 B Year of Construction 0.03474 Number of Bedrooms. 5.000415 Intercept Area Standard Error 31.3013 0.374814 0.015665 0.133277 t Stat P-value Lower 95% 1.270048 0.207137 -22.3784 13.72036 0.000000 4.398583 2.2176 37.51899 0.000000 4.735863 0.003644 Upper 95% 101.8867 5.886582 0.065835 D 6. (2 points) Approximately, what is the price of a 3-bedroom house in downtown if the con- struction year is 2015? Answer:

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