C3 Refer to Computer Exercise C2 in Chapter 3. Now, use the log of the housing price as the dependent variable: log(pric

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C3 Refer To Computer Exercise C2 In Chapter 3 Now Use The Log Of The Housing Price As The Dependent Variable Log Pric 1 (58.65 KiB) Viewed 80 times

C3 Refer to Computer Exercise C2 in Chapter 3. Now, use the log of the housing price as the dependent variable: log(price) = ßo + Bisqrft + B2bdrms + u. (i) You are interested in estimating and obtaining a confidence interval for the percent- age change in price when a 150-square-foot bedroom is added to a house. In decimal form, this is 0, = 150B1 + B2. Use the data in HPRICEL.RAW to estimate 01. (ii) Write B2 in terms of 0, and B1 and plug this into the log(price) equation. (iii) Use part (ii) to obtain a standard error for ôand use this standard error to construct a 95% confidence interval.