22 - Chapter 2 Exercise Solutions Principles of...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 2, Exercise Solutions, Principles of Econometrics, 3e 22 Exercise 2.12 (continued) (c) The estimated equation when a house is vacant at the time of sale is n 4792.70 69.908 PRICE SQFT =− + For houses that are occupied it is n 27,169 89.259 PRICE SQFT + These results suggest that price increases by $69.91 for each additional square foot in size for vacant houses and by $89.26 for each additional square foot of house size for houses that are occupied. Also, the two estimated lines will cross such that vacant houses will have a lower price than occupied houses when the house size is large, and occupied houses
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Ask a homework question - tutors are online