Suppose a researcher collects data on houses that have been sold in a particular neighbourhood over the past year, and obtains the regressions results in the table shown below. This table is used for Questions 1-6. Dependent variable: In(Price) Regressor (1) (2) (3) (4) (5) Size 0.00042 (0.000038) 0.57 (2.03) 0.69 (0.055) In(Size) 0.69 (0.054) 0.68 (0.087) In(Size)² 0.0078 (0.14) Bedrooms 0.0036 (0.037) 0.082 (0.032) 0.071 (0.034) 0.071 (0.034) 0.071 (0.036) 0.071 (0.035) Pool View 0.037 0.027 0.026 0.027 0.027 (0.030) (0.029) (0.028) (0.026) (0.029) Pool x View 0.0022 (0.10) 0.13 (0.045) 0.12 (0.035) 0.12 (0.035) Condition 0.12 (0.036) 0.12 (0.035) Intercept 10.97 6.60 (0.39) 6.63 (0.53) 7.02 (7.50) 6.60 (0.069) (0.40) Summary Statistics SER 0.102 0.098 0.099 0.099 0.099 R² 0.72 0.74 0.73 0.73 0.73 Variable definitions: Price = sale price ($); Size = house size (in square feet); Bedrooms = number of bedrooms; Pool = binary variable (1 if house has a swimming pool, O otherwise); View = binary variable (1 if house has a nice view, 0 otherwise); Condition = binary variable (1 if real estate agent reports house is in excellent condition, 0 otherwise). A family purchases a 2000 square foot home and plans to make extensions totalling 500 square feet. The house currently has a pool, and a real estate agent has reported that the house is in excellent condition. However, the house does not have view, and this will not change as a result of the extensions. According to the results in column (1), what is the expected DOLLAR increase in the price of the home due to the planned extensions? (Report your answer to the nearest dollar and do not include any commas or $ signs.)
Suppose a researcher collects data on houses that have been sold in a particular neighbourhood over the past year, and obtains the regressions results in the table shown below. This table is used for Questions 1-6. Dependent variable: In(Price) Regressor (1) (2) (3) (4) (5) Size 0.00042 (0.000038) 0.57 (2.03) 0.69 (0.055) In(Size) 0.69 (0.054) 0.68 (0.087) In(Size)² 0.0078 (0.14) Bedrooms 0.0036 (0.037) 0.082 (0.032) 0.071 (0.034) 0.071 (0.034) 0.071 (0.036) 0.071 (0.035) Pool View 0.037 0.027 0.026 0.027 0.027 (0.030) (0.029) (0.028) (0.026) (0.029) Pool x View 0.0022 (0.10) 0.13 (0.045) 0.12 (0.035) 0.12 (0.035) Condition 0.12 (0.036) 0.12 (0.035) Intercept 10.97 6.60 (0.39) 6.63 (0.53) 7.02 (7.50) 6.60 (0.069) (0.40) Summary Statistics SER 0.102 0.098 0.099 0.099 0.099 R² 0.72 0.74 0.73 0.73 0.73 Variable definitions: Price = sale price ($); Size = house size (in square feet); Bedrooms = number of bedrooms; Pool = binary variable (1 if house has a swimming pool, O otherwise); View = binary variable (1 if house has a nice view, 0 otherwise); Condition = binary variable (1 if real estate agent reports house is in excellent condition, 0 otherwise). A family purchases a 2000 square foot home and plans to make extensions totalling 500 square feet. The house currently has a pool, and a real estate agent has reported that the house is in excellent condition. However, the house does not have view, and this will not change as a result of the extensions. According to the results in column (1), what is the expected DOLLAR increase in the price of the home due to the planned extensions? (Report your answer to the nearest dollar and do not include any commas or $ signs.)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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