1. [70 points] You wish to predict the sale price of single-family residences in

Question

1. [70 points] You wish to predict the sale price of single-family residences in Massachusetts using property features (commonly called a “hedonic pricing model”).  You collect price and property features data on properties sold in the state for the year 2010 and obtain the following regression:

Pricei = 14407.60 – 759.92*houseagei + .24*lotsizei + 354.35*bldareai + 12015.61*roomsi + µi

              (6433.23)   (89.67)                       (.115)              (265.39)                   (8516.47)

Observations = 2691         R2 = 0.49             F = 65.10

Where:

houseage = age of the house (in years)

lotsize = total square feet of the land

bldarea = total square feet of the interior of the house

rooms = total number of rooms in the house

[6 points] How would you categorize, or label, this dataset?  Defend your answer

Explanation / Answer

This is an instance of multipl eregression, where, 2691 observations were considered and 49% variability in price is explained by variation in ag eof house, total sqaure feet of the land, total sqaure feet of interior of house, and total number of rooms in the house.

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.