Interpret the estimate of the coefficient of each variable. Are the algebraic si

Question

  Interpret the estimate of the coefficient of each variable. Are the algebraic signs of each of the estimates consistent with your prior expectations? Yes/no. Explain. (If “yes” explain why it is; if “no” explain why it isn’t).

Model B

. regress y x Bedrooms Baths Age Pool Waterfront

Source | SS df MS Number of obs = 1,080

-------------+---------------------------------- F(6, 1073) = 438.65

   Model | 210.892988 6 35.1488314 Prob > F = 0.0000

Residual | 85.979378 1,073 .080129896 R-squared = 0.7104

-------------+---------------------------------- Adj R-squared = 0.7088

   Total | 296.872366 1,079 .275136577 Root MSE = .28307

------------------------------------------------------------------------------

   y | Coef. Std. Err. t P>|t| [95% Conf. Interval]

-------------+----------------------------------------------------------------

x | .761261 .0353373 21.54 0.000 .691923 .830599

Bedrooms | -.059842 .0174668 -3.43 0.001 -.0941148 -.0255691

   Baths | .2333383 .0210477 11.09 0.000 .192039 .2746376

   Age | -.0054627 .0005296 -10.31 0.000 -.0065019 -.0044234

Pool | .0688156 .0327446 2.10 0.036 .0045648 .1330664

Waterfront | .1839055 .0344828 5.33 0.000 .1162441 .2515669

_cons | 5.775463 .2252819 25.64 0.000 5.33342 6.217507

------------------------------------------------------------------------------

Explanation / Answer

x - is some variable, with no name. Per unit rise in x , y increases by .761261.Expected

1 unit increase in bedroom decreases cost by .059842 units.Not Expected

1 unit increase in baths increases cost by .2333383 units.Expected

Increase in age by a year, decreases the cost by .0054627 units. Expected

If there' a pool , increases the cost by .06888156 units. Expected.
if this variable is a linear variable then per unit increase in Pool increases cost by .06888156
Expected

If the proporty has Waterfront, then cost increaese by .1839055, Expected

There will be still a cost to the house if house is unconstructed ( no bedroom, no waterfront or pool, etc.)
The constant of 5.775463 represents this cost.

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