22 - Chapter 2 Exercise Solutions Principles of...

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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
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This note was uploaded on 11/23/2011 for the course ECON MPBE taught by Professor Jansveceny during the Spring '11 term at Metropolitní Univerzita Praha.

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