State the null and alternative hypotheses that the apparent age of the building does not affect the

monthly rent paid for the unit.

Section B . Answer all questions . ( 30 marks ) Consider the following regression results which are produced in Des Rosiers and Therault ( 1996 ) paper on rental amenities and the stability of hedonic prices . The dependent variable , MR . is monthly rent paid for the unit ( measured in $ ) Variables Coefficient - value p -value Intercept 248. 20 48.90 LNAPPAGE 56 48 59.74 NBROOMS BY 56 73 07.85 AREABYRMA 3.98 29 86 HEATED 59.3 98. 28 LIGHTED B 4 17 3. 63 2003 SEMIFURNB 5.52 11.10 ELEVATOR 86 89 43. 58 0901 LODISTOOD By N ( no of observations ) = 13 378 Kind of coefficients estimated in regression ) = 9 Avg . rent = $404 Adj . R 1 0. 6869 Variables Definition of variable LAPPAGE Natural log of apparent age of the building where the unit stands , in years NBROOMS Number of rooms in the unit AREABYRM Area per room , in square metres HEATED Monthly rent includes heating - dummy variable LIGHTED Monthly rent includes lighting - dummy variable SEMIFURN Fridge and cooker are included in rent - dummy variable ELEVATOR Building has an elevator - dummy variables LODISTOOD Natural log of Euclidian distance from CBD in kilometres31. State the null and alternative hypotheses that the apparent age of the building does not affect the monthly rent paici for the unit. [2] BE. Based on the regression results reported in the table. what is the additional rant paid for a unit with 4 rooms. an elevator, and semi furnished, holding all other things constant? Explain [4] BE. Looking at the coefcient of LnAPPAC-EE in the table of results. calculate the effect on monthlyr rent for a unit that is housed In a building that Is 1!] year older. [2] B4. Suppose you went to test whether a unit with healing and a unit with lighting will increase the monthly rent by the same amount. State the null and alternative hypotheses. [2] BE. Following on from 34. explain how you 1n'ill test the null hypothesis. State the regressions (Le. restricted and unrestricted} you will run. the test statisc you will compute. and the decision to reject the null. [4]