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Data on 880 houses sold in Stockton, CA during mid-2005 shows the housing price....

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Question;Data on 880 houses sold in Stockton, CA, during mid-2005 shows the housing price, square feet area, number of beds, number of baths, age of the house, number of stories, and a dummy variable to proxy vacancy (=1 if vacant, 0 if it is not vacant). Use the ?Stockton Housing Data? to answer the following questions:a) Estimate the following regression model:PRICE =?1 +?2SQFT +?3AGE +?4BEDS +?5BATHS +?6STORIES +?7VACANCY + eb) Interpret and test the statistical significance of each coefficient at 5% level.c) Test the hypothesis (at 5% level of significance) that an additional bedroom increases housing price by$2000.d) Using the houses that were vacant at the time of sale, test the hypothesis (at 5% level of significance)that the value of an additional square foot of living area is more than or equal to $80.e) Construct a 95% interval estimate for?4 using (i) the full sample, (ii) houses vacant at the time of sale,and (iii) occupied at the time of sale.

 

Paper#55370 | Written in 18-Jul-2015

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