Question 11 Suppose Now You Want To Test The Coefficient For Number Of Bedrooms Bdrm Equals The Coefficient For Number 1 (28.32 KiB) Viewed 16 times
Question 11 Suppose Now You Want To Test The Coefficient For Number Of Bedrooms Bdrm Equals The Coefficient For Number 2 (22.14 KiB) Viewed 16 times
Question 11 Suppose now you want to test the coefficient for number of bedrooms (BDRM) equals the coefficient for number of bathrooms (BATH), and that both coefficients are equal to 0. What is the null hypothesis? Olle A-A-4-0 Ho: A-B-0 He: As - 0 2 pts Question 12 2 pts Using the table(s) given, what is the critical value you would use for a 1% test? Give the exact value from the table. (HINT: First identify the test that you will need to perform to test the null hypothesis from Question 11).
PART 2 (Questions 8-12) (15 points) Hedonic Estimation. You are given a sample of 900 real estate transactions; the dependent variable is the logarithm of the price per square foot (LOGPRICE), and some explanatory variables are the logarithm of square feet of floor space (LOGSQFT), number of bedrooms (BDRM), and number of bathrooms (BATH). You also observe 2 dummy variables, CONDO (which is equal to 1 if the property is in a condominium, 0 otherwise) and DOWNTOWN (which is equal to 1 if the property sold is in a downtown location, 0 otherwise). Your original econometric specification is LOGPRICE-Bo + BLOGSQFT + B₂ BDRM + 8, BATH + B,CONDO+B DOWNTOWN + e
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