(d) Lot size is measured in square feet. Do you think that another scale might bemore appropriate? Why or why not?(e) The F-statistic for omitting BDR and Age from the regression is F = 0.08. Arethe 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 communityin 2019 (estimated standard errors in parentheses)Price= 119.2 + 0.485BDR + 23.4Bath + 0.156Hsize + 0.002Lsize + 0.09Age(0.011)(2.61)(8.94)(0.00048)(0.311)R2 = 0.72where Price denote the selling house price (measured in $1000s), BDR denote thenumber of bedrooms, Bath denote the number of bathrooms, Hsize denote thesize of the house (in square feet), Lsize denote the lot size (in square feet), andAge denote the age of the house (in years).

sider the following estimated regression for 220 home sales 019 (estimated standard errors in parentheses) = 119.2 + 0.485BDR + 23.4Bath + 0.156Hsize + 0.002 (8.94) (2.61) (0.011) (0.0004 R2 = 0.72 re Price denote the selling house price (measured in $1000 ber of bedrooms, Bath denote the number of bathrooms of the house (in square feet), Lsize denote the lot size (in denote the age of the house (in years).

sider the following estimated regression for 220 home sales 019 (estimated standard errors in parentheses) = 119.2 + 0.485BDR + 23.4Bath + 0.156Hsize + 0.002 (8.94) (2.61) (0.011) (0.0004 R2 = 0.72 re Price denote the selling house price (measured in $1000 ber of bedrooms, Bath denote the number of bathrooms of the house (in square feet), Lsize denote the lot size (in denote the age of the house (in years).

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

ChapterB: Differential Calculus Techniques In Management

Section: Chapter Questions

Problem 8E

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