Unformatted text preview: = = < 0.0036 0.037   0.09730 1.96. t Note that this coefficient measures the effect of an additional bedroom holding the size of the house constant. (e)The quadratic term ln( Size ) 2 is not important. The coefficient estimate is not statistically significant at a 5% significance level: = = < 0.0078 0.14   0.05571 1.96. t (f) The house price is expected to increase by 7.1% ( = 100% × 0.071 × 1) when a swimming pool is added to a house without a view and other factors are held constant. The house price is expected to increase by 7.32% ( = 100% × (0.071 × 1 + 0.0022 × 1) ) when a swimming pool is added to a house with a view and other factors are held constant. The difference in the expected percentage change in price is 0.22%. The difference is not statistically significant at a 5% significance level: = = < 0.0022 0.10   0.022 1.96. t...
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 Spring '10
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 Statistics, 0.22%, 0.436%, 7.32%, 13.764%, 17.276%

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