The article Zoning and Industrial Land Values: The Case of Philadelphia (AREUEA Journal [1991]: 154-159) considered...

 

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The article "Zoning and Industrial Land Values: The Case of Philadelphia" (AREUEA Journal [1991]: 154-159) considered a regression model to relate the value of a vacant lot in Philadelphia to a number of different predictor variables. a. One of the predictors was x3 = the distance from the city's major east-west thoroughfare, for which b3 = .489 and $b, = .1044. The model contained seven predictors, and the coefficients were estimated from a sample of 100 vacant lots. Calculate and interpret a confidence interval for B3 using a confidence level of 95%. b. Another predictor was X₁, an indicator variable for whether the lot was zoned for residential use, for which b₁ =-.183 and $b, = .3055.. Carry out a test of Ho: B₁ = 0 versus H₂: B₁ #0, and interpret the conclusion in the context of the problem. The article "Zoning and Industrial Land Values: The Case of Philadelphia" (AREUEA Journal [1991]: 154-159) considered a regression model to relate the value of a vacant lot in Philadelphia to a number of different predictor variables. a. One of the predictors was x3 = the distance from the city's major east-west thoroughfare, for which b3 = .489 and $b, = .1044. The model contained seven predictors, and the coefficients were estimated from a sample of 100 vacant lots. Calculate and interpret a confidence interval for B3 using a confidence level of 95%. b. Another predictor was X₁, an indicator variable for whether the lot was zoned for residential use, for which b₁ =-.183 and $b, = .3055.. Carry out a test of Ho: B₁ = 0 versus H₂: B₁ #0, and interpret the conclusion in the context of the problem.

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