Econ103_Lec7 (2012_12_16 01_29_32 UTC)

For pool and fireplace their marginal eect is

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Unformatted text preview: the indicator variables. test 1.utown 1.utown#c.sqft! H : δ 0 3 of 9 1=0, γ=0 Tes:ng the significance of the University Town loca:on. Based on p- value =0.000, we reject the null hypothesis that loca:on has no effect at significance level α=0.001. 30 Indicator Variables (Regression) 4 of 9 4.  Calculate the es:mated regression intercept for houses near the university (UTOWN=1). PRICE = β1 + δ1(1)+β2SQFT + γ(SQFT×1) +β3AGE +δ2(1)+δ3FPLACE+e PRICE = (24.5 + 27.453) + (7.6122 +1.2994)SQFT - 0.1901AGE +4.3772POOL+1.6492FPLACE lincom _cons + 1.utown 24.5 + 27.453 = 51.95294 31 Indicator Variables (Regression) 5 of 9 5.  Calculate the es:mated regression slope for houses near the university (UTOWN=1). PRICE = β1 + δ1(1)+β2SQFT + γ(SQFT×1) +β3AGE +...
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This note was uploaded on 02/19/2013 for the course ECON 103 taught by Professor Sandrablack during the Spring '07 term at UCLA.

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