a. the Brush-Pegan test of hetroskedasticity is reported the below : Breusch-Pagan / Cook-Weisberg test for heteroskedasticity Ho: Constant variance Variables: fitted values of price chi2 (1) 95.15 Prob > chi2 0.0000 i. What is your conclusion? ii. What solutions do you suggest?
a. the Brush-Pegan test of hetroskedasticity is reported the below : Breusch-Pagan / Cook-Weisberg test for heteroskedasticity Ho: Constant variance Variables: fitted values of price chi2 (1) 95.15 Prob > chi2 0.0000 i. What is your conclusion? ii. What solutions do you suggest?
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
Related questions
Question
10 Using a sample of 546 observations, a researcher is interested in finding factors that influence house prices (measured in ten thousands). The researcher run regression of Hedonic price model that explain house prices using lot size, bed rooms, bath rooms, stories all are measured in number of units and dummy variables 2 whether the house has air-conditioning, drive way, recreation room, glass show , full basement, garage place and preferred area the results are shown below.
![reg price lotsize bedrooms bathrms airco driveway recroom fullbase gashw garagepl prefarea stories
Source
SS
df
MS
Number of obs
546
F (11, 534)
99.97
Мodel
2.6158e+11
11
2.3780e+10
Prob > F
0.0000
Residual
1.2703e+11
534
237874666
R-squared
0.6731
Adj R-squared
0.6664
Total
3.8860e+11
545
713032635
Root MSE
15423
price
Coef.
Std. Err.
P>|t]
[95% Conf. Interval]
lotsize
3.546303
3503
10.12
0.000
2.858168
4.234438
bedrooms
1832.003
1047
1.75
0.081
-224.7409
3888.748
bathrms
14335.56
1489.921
9.62
0.000
11408.73
17262.38
airco
12632.89
1555.021
8.12
0.000
9578.182
15687.6
driveway
6687.779
2045.246
3.27
0.001
2670.065
10705.49
recroom
4511.284
1899.958
2.37
0.018
778.9759
8243.592
fullbase
5452.386
1588.024
3.43
0.001
2332.845
8571.926
gashw
12831.41
3217.597
3.99
0.000
6510.706
19152.11
garagepl
4244.829
840.5442
5.05
0.000
2593.65
5896.008
prefarea
9369.513
1669.091
5.61
0.000
6090.724
12648.3
stories
6556.946
925.2899
7.09
0.000
4739.291
8374.6
cons
-4038.35
3409.471
-1.18
0.237
-10735.97
2659.271
a. the Brush-Pegan test of hetroskedasticity is reported the below :
Breusch-Pagan / Cook-Weisberg test for heteroskedasticity
Ho: Constant variance
Variables: fitted values of price
chi2 (1)
95.15
Prob > chi2
0.0000
i.
What is
your
conclusion?
ii.
What solutions do you suggest?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1ed7d57d-a3cd-4071-9edd-1c9321c3e8ba%2Faca82092-0a64-4b7c-8b63-a35b7ecba8db%2F7vna88d_processed.png&w=3840&q=75)
Transcribed Image Text:reg price lotsize bedrooms bathrms airco driveway recroom fullbase gashw garagepl prefarea stories
Source
SS
df
MS
Number of obs
546
F (11, 534)
99.97
Мodel
2.6158e+11
11
2.3780e+10
Prob > F
0.0000
Residual
1.2703e+11
534
237874666
R-squared
0.6731
Adj R-squared
0.6664
Total
3.8860e+11
545
713032635
Root MSE
15423
price
Coef.
Std. Err.
P>|t]
[95% Conf. Interval]
lotsize
3.546303
3503
10.12
0.000
2.858168
4.234438
bedrooms
1832.003
1047
1.75
0.081
-224.7409
3888.748
bathrms
14335.56
1489.921
9.62
0.000
11408.73
17262.38
airco
12632.89
1555.021
8.12
0.000
9578.182
15687.6
driveway
6687.779
2045.246
3.27
0.001
2670.065
10705.49
recroom
4511.284
1899.958
2.37
0.018
778.9759
8243.592
fullbase
5452.386
1588.024
3.43
0.001
2332.845
8571.926
gashw
12831.41
3217.597
3.99
0.000
6510.706
19152.11
garagepl
4244.829
840.5442
5.05
0.000
2593.65
5896.008
prefarea
9369.513
1669.091
5.61
0.000
6090.724
12648.3
stories
6556.946
925.2899
7.09
0.000
4739.291
8374.6
cons
-4038.35
3409.471
-1.18
0.237
-10735.97
2659.271
a. the Brush-Pegan test of hetroskedasticity is reported the below :
Breusch-Pagan / Cook-Weisberg test for heteroskedasticity
Ho: Constant variance
Variables: fitted values of price
chi2 (1)
95.15
Prob > chi2
0.0000
i.
What is
your
conclusion?
ii.
What solutions do you suggest?
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