Moving to Chapter 14 material (but still using the same Excel file), run one reg

ID: 3437169 • Letter: M

Question

Moving to Chapter 14 material (but still using the same Excel file), run one regression with “Selling Price” as the Y input and the following five variables as X variables:

- Number of Baths
- Number of Bedrooms
- Pool (dummy) – 1 indicates “pool”; 0 indicates “no pool”
- Garage (dummy) – 1 indicates “garage”; 0 indicates “no garage”
- Distance to Town Center

Which of the following interpretations of the coefficient on the “Number of Bedrooms” variable is correct?

On average, the selling price of a house will increase by approximately $153,678 for an additional bedroom (holding the other four variables constant).

On average, the selling price of a house will increase by approximately $2,408 for an additional bedroom (holding the other four variables constant).

On average, the selling price of a house will increase by approximately $9,467 for an additional bedroom (holding the other four variables constant).

On average, the selling price of a house will decrease by approximately $9,467 for an additional bedroom (holding the other four variables constant

Which of the following interpretations of the coefficient on the “Pool (dummy)” variable is correct?

On average, the selling price of a house will increase by approximately $153,678 if the house has a pool (holding the other four variables constant).

On average, the selling price of a house will increase by approximately $2,408 if the house has a pool (holding the other four variables constant).

On average, the selling price of a house will increase by approximately $22,453 if the house has a pool (holding the other four variables constant).

On average, the selling price of a house will decrease by approximately $22,453 if the house has a pool (holding the other four variables constant).