Pi = αo + α₁x₁ + α ₂²₁ + αzW₁ + Uj, for i = 1,...,93, where the individual variables are defined in the table below: Variable Description Pi Pounds per month for property i X₂ The apparent age of the property i Z₁ Wi Area per room in square meters of property i Distance in kilometres of property i to the nearest shopping centre The parameter estimates and their t-ratios are given in the following table: Variable Parameter estimate t-ratio Constant 60 23.45 Xi -43.12 -49.34 Z₁ 8.22 14.23 40 55 60 7
Pi = αo + α₁x₁ + α ₂²₁ + αzW₁ + Uj, for i = 1,...,93, where the individual variables are defined in the table below: Variable Description Pi Pounds per month for property i X₂ The apparent age of the property i Z₁ Wi Area per room in square meters of property i Distance in kilometres of property i to the nearest shopping centre The parameter estimates and their t-ratios are given in the following table: Variable Parameter estimate t-ratio Constant 60 23.45 Xi -43.12 -49.34 Z₁ 8.22 14.23 40 55 60 7
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
4
Using the estimation results, compute a 99% confidence interval for the coefficient on zi. Give an economic interpretation of the result.
Transcribed Image Text:Your friend works for an estate agency. He would like to understand what
characteristics influence monthly rents of properties. Therefore, he plans to estimate
the following regression model:
P₁ = αo + α₁x₁ + α₂²¡ + αzW; + Uj,
for i = 1,...,93, where the individual variables are defined in the table below:
Variable
Description
Pi
Pounds per month for property i
Xi
The apparent age of the property i
Z₁
Area per room in square meters of property i
Wi
Distance in kilometres of property i to the nearest
shopping centre
The parameter estimates and their t-ratios are given in the following table:
Variable
Parameter estimate
t-ratio
Constant
60
23.45
-43.12
-49.34
Z;
8.22
14.23
W₁
-40.55
-60.7
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps with 1 images
Recommended textbooks for you
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
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
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
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
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
Elementary Statistics: Picturing the World (7th E…
Statistics
ISBN:
9780134683416
Author:
Ron Larson, Betsy Farber
Publisher:
PEARSON
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
Statistics
ISBN:
9781319013387
Author:
David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:
W. H. Freeman