Homework Help is Here – Start Your Trial Now!
Math
Statistics
Consider the following estimated regression for 220 home sales from a community in 2019 (estimated standard errors in parentheses) Price = 119.2 + 0.485BDR + 23.4Bath + 0.156Hsize + 0.002Lsize + 0.09Age (2.61) (8.94) (0.011) (0.00048) (0.311) R2 = 0.72 where Price denote the selling house price (measured in $1000s), BDR denote the number of bedrooms, Bath denote the number of bathrooms, Hsize denote the size of the house (in square feet), Lsize denote the lot size (in square feet), and Age denote the age of the house (in years). (a) Suppose a homeowner adds a new bathroom to her house, which increases the size of the house by 100 square feet. What is the expected increase in the value of the house2 (b) Is the coefficient corresponding to BDR statistically different from zero? (c) Typically, five-bedroom houses sell for much more than two-bedroom houses. Is this consistent with your answer to (a) and with the regression more generally? (d) Lot size is measured in square feet. Do you think that another scale might be more appropriate? Why or why not? (e) The F-statistic for omitting BDR and Age from the regression is F = 0.08. Are the coefficients on BDR and Age statistically different from 0 at a 10% significance level?

Consider the following estimated regression for 220 home sales from a community in 2019 (estimated standard errors in parentheses) Price = 119.2 + 0.485BDR + 23.4Bath + 0.156Hsize + 0.002Lsize + 0.09Age (2.61) (8.94) (0.011) (0.00048) (0.311) R2 = 0.72 where Price denote the selling house price (measured in $1000s), BDR denote the number of bedrooms, Bath denote the number of bathrooms, Hsize denote the size of the house (in square feet), Lsize denote the lot size (in square feet), and Age denote the age of the house (in years). (a) Suppose a homeowner adds a new bathroom to her house, which increases the size of the house by 100 square feet. What is the expected increase in the value of the house2 (b) Is the coefficient corresponding to BDR statistically different from zero? (c) Typically, five-bedroom houses sell for much more than two-bedroom houses. Is this consistent with your answer to (a) and with the regression more generally? (d) Lot size is measured in square feet. Do you think that another scale might be more appropriate? Why or why not? (e) The F-statistic for omitting BDR and Age from the regression is F = 0.08. Are the coefficients on BDR and Age statistically different from 0 at a 10% significance level?

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
See similar textbooks
icon
Related questions
Question
Consider the following estimated regression for 220 home sales from a community in 2019 (estimated standard errors in parentheses) Price = 119.2 + 0.485BDR + 23.4Bath + 0.156Hsize + 0.002Lsize + 0.09Age (8.94) (2.61) (0.011) (0.00048) (0.311) R2 = 0.72 where Price denote the selling house price (measured in $1000s), BDR denote the number of bedrooms, Bath denote the number of bathrooms, Hsize denote the size of the house (in square feet), Lsize denote the lot size (in square feet), and Age denote the age of the house (in years). (a) Suppose a homeowner adds a new bathroom to her house, which increases the size of the house by 100 square feet. What is the expected increase in the value of the house (b) Is the coefficient corresponding to BDR statistically different from zero? (c) Typically, five-bedroom houses sell for much more than two-bedroom houses. Is this consistent with your answer to (a) and with the regression more generally? (d) Lot size is measured in square feet. Do you think that another scale might be more appropriate? Why or why not? (e) The F-statistic for omitting BDR and Age from the regression is F = 0.08. Are the coefficients on BDR and Age statistically different from 0 at a 10% significance level?
Transcribed Image Text:Consider the following estimated regression for 220 home sales from a community in 2019 (estimated standard errors in parentheses) Price = 119.2 + 0.485BDR + 23.4Bath + 0.156Hsize + 0.002Lsize + 0.09Age (8.94) (2.61) (0.011) (0.00048) (0.311) R2 = 0.72 where Price denote the selling house price (measured in $1000s), BDR denote the number of bedrooms, Bath denote the number of bathrooms, Hsize denote the size of the house (in square feet), Lsize denote the lot size (in square feet), and Age denote the age of the house (in years). (a) Suppose a homeowner adds a new bathroom to her house, which increases the size of the house by 100 square feet. What is the expected increase in the value of the house (b) Is the coefficient corresponding to BDR statistically different from zero? (c) Typically, five-bedroom houses sell for much more than two-bedroom houses. Is this consistent with your answer to (a) and with the regression more generally? (d) Lot size is measured in square feet. Do you think that another scale might be more appropriate? Why or why not? (e) The F-statistic for omitting BDR and Age from the regression is F = 0.08. Are the coefficients on BDR and Age statistically different from 0 at a 10% significance level?
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps with 5 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
Probability and Statistics for Engineering and th…
Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning
Statistics for The Behavioral Sciences (MindTap C…
Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
Elementary Statistics: Picturing the World (7th E…
Elementary Statistics: Picturing the World (7th E…
Statistics
ISBN:
9780134683416
Author:
Ron Larson, Betsy Farber
Publisher:
PEARSON
The Basic Practice of Statistics
The Basic Practice of Statistics
Statistics
ISBN:
9781319042578
Author:
David S. Moore, William I. Notz, Michael A. Fligner
Publisher:
W. H. Freeman
Introduction to the Practice of Statistics
Introduction to the Practice of Statistics
Statistics
ISBN:
9781319013387
Author:
David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:
W. H. Freeman
SEE MORE TEXTBOOKS