Below is some of the regression output from a regression of the amount rental houses on an island rent for (expressed in thousands of $'s) based on the size of the house (expressed in square feet), whether the house has an ocean front view (VIEW = 1 if it has an ocean front view and = 0 if not), and an interaction term between the ocean front view dummy variable and the size of the house. If the estimated equation is Price = 1,444 + 0.3*Size + 1,411*View + 0.08*(Size*View) How much more (or less) does a 3800 square foot house that has an ocean front view rent for compared to a similar sized house without an ocean front view? (if the ocean front house rents for more then express your answer as a POSITIVE number; if the ocean front house rents for less then express your answer as a NEGATIVE number) (please express your answer using 1 decimal places)
Correlation
Correlation defines a relationship between two independent variables. It tells the degree to which variables move in relation to each other. When two sets of data are related to each other, there is a correlation between them.
Linear Correlation
A correlation is used to determine the relationships between numerical and categorical variables. In other words, it is an indicator of how things are connected to one another. The correlation analysis is the study of how variables are related.
Regression Analysis
Regression analysis is a statistical method in which it estimates the relationship between a dependent variable and one or more independent variable. In simple terms dependent variable is called as outcome variable and independent variable is called as predictors. Regression analysis is one of the methods to find the trends in data. The independent variable used in Regression analysis is named Predictor variable. It offers data of an associated dependent variable regarding a particular outcome.
29. Below is some of the regression output from a regression of the amount rental houses on an island rent for (expressed in thousands of $'s) based on the size of the house (expressed in square feet), whether the house has an ocean front view (VIEW = 1 if it has an ocean front view and = 0 if not), and an interaction term between the ocean front view dummy variable and the size of the house. If the estimated equation is
Price = 1,444 + 0.3*Size + 1,411*View + 0.08*(Size*View)
How much more (or less) does a 3800 square foot house that has an ocean front view rent for compared to a similar sized house without an ocean front view? (if the ocean front house rents for more then express your answer as a POSITIVE number; if the ocean front house rents for less then express your answer as a NEGATIVE number) (please express your answer using 1 decimal places)
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 3 images
