Question: What can we conclude about theinteraction term between pool and view in column (5)? The interaction term is significant at the 10% level and itssign

What can we conclude about theinteraction term between pool and view in column (5)?

The interaction term is significant at the 10% level and itssign indicates that the impact of installing a pool has a smaller effect on price when the house has a view.

The interaction termis significant at the 10% level and itssign indicates that the impact of installing a pool has a larger effect on price when the house has a view.

The sign of the interaction term implies that the impact of installing a pool has a smaller effect on price when the house has a view,but the estimate is not statistically significant at the10%level.

The sign of the interaction term implies that the impact of installing a pool has a larger effect on price when the house has a view, but the estimate is not statistically significant at the 10%level.

What can we conclude about theinteraction term between pool and view in

Dependent variable: In(Price) Regressor (1) (2) (3) (4) (5) Size 0.00042 (0.000038) In(Size) 0.69 0.68 0.57 (0.054) 0.69 (0.087) (2.03) (0.055) In(Size)2 0.0078 (0.14) Bedrooms 0.0036 (0.037) Pool 0.082 0.071 (0.032) 0.071 (0.034) 0.071 (0.034) 0.071 (0.036) (0.035) View 0.037 0.027 (0.029) 0.026 (0.028) 0.027 (0.026) 0.027 (0.029) (0.030) Pool X View 0.0022 (0.10) Condition 0.13 0.12 0.12 (0.045) 0.12 (0.035) (0.035) 0.12 (0.036) (0.035) Intercept 10.97 6.60 (0.069) 6.63 (0.39) 7.02 (0.53) 6.60 (7.50) (0.40) Summary Statistics SER 0.102 0.098 0.099 0.099 0.099 R2 0.72 0.74 0.73 0.73 0.73 Variable definitions: Price = sale price ($); Size = house size (in square feet); Bedrooms = number of bedrooms; Pool = binary variable (1 if house has a swimming pool, 0 otherwise); View = binary variable (1 if house has a nice view, 0 otherwise); Condition = binary variable (1 if real estate agent reports house is in excellent condition, 0 otherwise)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!