Tutorial_Assignment_Week_4

Tutorial_Assignment_Week_4 - Tutorial Assignment Week 4 Q1...

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Unformatted text preview: Tutorial Assignment Week 4 Q1 i) Siblings does have a small expected effect on the level of education. But the effect is small with 0.094 as its coefficient sibs has to increase by 10.64 to decrease educ by 1 all other things held constant ii) The coefficient of meduc of 0.431 represents the amount of increase in educ if the no. of mothers education is increased by 1 all other things held constant. iii) 3.846 Q2 1. Price = -9874.1 + 1036.3sqrmtr+ 17.503lotsize + 12086bdrms N= 1, R-square = 0.6571 2. 12086 3. 41102.4. Different answer as there is now an additional dependant variable to consider 4. 65.71% 5. $366213.198 6. $366610.9 => u= $46610.90 According to number it is underpriced however, since R-square does not equal to 1 this means there are other factors not accounted for that affects the changes in price. For it to be exactly 320000 the disturbance has to equal 0, e(u|x)=0. Therefore in reality no solid it to be exactly 320000 the disturbance has to equal 0, e(u|x)=0....
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This note was uploaded on 06/05/2011 for the course ECON 2206 taught by Professor Yang during the Three '11 term at University of New South Wales.

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Tutorial_Assignment_Week_4 - Tutorial Assignment Week 4 Q1...

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