Suppose thata researcher, by using a sample of transactions of residential houses, wants to estimate how the price of the houses is affected by the presence of an elevator in the building. To this end, he wants to regress the price of the house in thousands euro, price, on the dummy elevator indicating the presence of the elevator (dummy equal to 1) or not (dummy equal to 0). Unfortunately, he makes a mistake so that he uses the original dummy divided by 100, so a variable that takes value 0.01 if there is an elevator in the building and 0 if not. How the estimated value of the coefficient of the dummy will be affected by this mistake: O (a) It will be multiplied by 100 O (b) It will be divided by 100 O (c) It will change according to the proportion of flats in buildings with and without elevator O (d) None of the above

MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
icon
Related questions
Topic Video
Question
O WEBCAM RECORDING
Industrial Economics
da 13
Suppose that a researcher, by using a sample of transactions of residential houses, wants to estimate how the price of the houses is affected by the
presence of an elevator in the building. To this end, he wants to regress the price of the house in thousands euro, price, on the dummy elevator
indicating the presence of the elevator (dummy equal to 1) or not (dummy equal to 0).
a non
data
ggio max.
Unfortunately, he makes a mistake so that he uses the original dummy divided by 100, so a variable that takes value 0.01 if there is an elevator in the
building and 0 if not.
ontrassegna
How the estimated value of the coefficient of the dummy will be affected by this mistake:
nda
O (a) It will be multiplied by 100
O (b) It will be divided by 100
(c) It will change according to the proportion of flats in buildings with and without elevator
O (d) None of the above
Precedente
Successivo
Transcribed Image Text:O WEBCAM RECORDING Industrial Economics da 13 Suppose that a researcher, by using a sample of transactions of residential houses, wants to estimate how the price of the houses is affected by the presence of an elevator in the building. To this end, he wants to regress the price of the house in thousands euro, price, on the dummy elevator indicating the presence of the elevator (dummy equal to 1) or not (dummy equal to 0). a non data ggio max. Unfortunately, he makes a mistake so that he uses the original dummy divided by 100, so a variable that takes value 0.01 if there is an elevator in the building and 0 if not. ontrassegna How the estimated value of the coefficient of the dummy will be affected by this mistake: nda O (a) It will be multiplied by 100 O (b) It will be divided by 100 (c) It will change according to the proportion of flats in buildings with and without elevator O (d) None of the above Precedente Successivo
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Optimization
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, statistics and related others by exploring similar questions and additional content below.
Similar 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