Provide an appropriate interpretation for each partial slope in the above estimated equation. 1b) Test the individual significance of each coefficient estimate from the above estimated equation at 5% significance level. 1c) With a 5% significance level, test the joint significance of all partial slopes in the above estimated equation.
Provide an appropriate interpretation for each partial slope in the above estimated equation. 1b) Test the individual significance of each coefficient estimate from the above estimated equation at 5% significance level. 1c) With a 5% significance level, test the joint significance of all partial slopes in the above estimated equation.
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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Question
E5
1a) Provide an appropriate interpretation for each partial slope in the above estimated equation.
1b) Test the individual significance of each coefficient estimate from the above estimated equation at 5% significance level.
1c) With a 5% significance level, test the joint significance of all partial slopes in the above estimated equation.
1d) Calculate the estimated change in a house price due to an additional four bedrooms of 150 square feet each: i) if the house has a colonial architecture; ii) if the house doesn’t have a colonial architecture.
Transcribed Image Text:You are given the following estimated equation:
In(price) = 3.85 +0.0025sqrft + 0.02bdrms
(0.18) (0.0006)
(0.003)
n = 88
in which:
0.056colonial + 0.00068sqrftcol
(0.00074)
(0.154)
R²= 0.7034
price = house price in thousands of dollars;
sqrft = size of the house in square footage;
bdrms = number of bedrooms in the house;
colonial = 1 if the house is of a colonial architecture, and 0 if not;
sqrft.col is an interaction variable equal to sqrft * colonial
1a) Provide an appropriate interpretation for
each partial slope in the above estimated
equation.
1b) Test the individual significance of each
coefficient estimate from the above estimated
equation at 5% significance level.
1c) With a 5% significance level, test the joint
significance of all partial slopes in the above
estimated equation.
1d) Calculate the estimated change in a house
price due to an additional four bedrooms of
150 square feet each: i) if the house has a
colonial architecture; ii) if the house doesn't
have a colonial architecture.
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