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# 11. Data were collected from a random sample of 220 home sal…

## Questions

### 11. Dаtа were cоllected frоm а randоm sample of 220 home sales from a community in 2013. Let Price denote the selling price (in $1000), BDR denote the number of bedrooms, Bath denote the number of bathrooms, Hsize denote the size of the house (in square feet), Lsize denote the lot size (in square feet), Age denote the age of the house (in years), and Poor denote a binary variable that is equal to 1 if the condition of the house is reported as “poor”. An estimated regression yields [6 points] Is the coefficient on BDR statistically significantly different from 0? [10 points] A homeowner purchases 2000 square feet from an adjacent lot. Construct a 95% confidence interval for the change in the value of her house. [8 points] Compare the prices of two houses, one for the house constructed 20 years earlier (Age of the house is 20 units higher). [6 points] The F-statistic for omitting BDR, Age and Hsize from the regression is F = 3.2. Are the coefficients on BDR, Age and Hsize statistically different from 0 at the 5% level? [12 points] Are the individual coefficients for Bath, Hsize, Lsize and Poor statistically significant? Please use the 1% significance level and a two-sided test.