A researcher is interested in studying the factors that affected the monthly house rent (P. in hundred dollars) across C

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: A Researcher Is Interested In Studying The Factors That Affected The Monthly House Rent P In Hundred Dollars Across C 1 (150.95 KiB) Viewed 25 times

A researcher is interested in studying the factors that affected the monthly house rent (P. in hundred dollars) across City A for the time period 2014-2018. For her study, she selects the size of the house (SZ, measured in sq ft), the distance of the house from downtown (D. measured in kilometres), the average real income of households within a one km radius of the house (1, expressed in logarithmic terms), the inflation rate in the economy (measured in percentage) as regressors. She collects data across 150 randomly selected localities in the city for this time period. Here, the average real income of households within a one km radius of the house (1), and the inflation rate in the economy (x) are the economic variables The following table shows the regression results Dependent variable: Monthly house rent in hundred dollars) Regressor (5) Size of the house (SZ) (1) 2.03" (0.98) (2) 1.67* (0.84) (3) 1.62 (0.82) Distance of the house from downtown (D) Logarithm of average real income of households within a one km radius (4) 1.54 (0.99) -2.09 (0.84) 2.121 (0.98) 1.62" (091) -1.98 (0.76) 4 Inflation rate in the economy (x) Years 2014-2018 2014-2018 1.01** (0.79) 2014-2018 yes 2014-2018 yes no no yes no State effects? Time effects? Clustered standard errors? n yes yes 2014-2018 yes yes yes 150 no 150 yes 150 yes 150 yes 150 F-Statistics and p-values on Joint Hypotheses Time effects=0 4.22 10.12 3.48 (0.002) (< 0.001) (0.006) Real income of households within a 25.20 one km radius, inflation rate in the economy - 0 (< 0.001) 2 R? 0.091 0.789 0.791 0.799 0.788 Standard errors are given in parentheses under the coefficients, and p-values are given in parentheses under F-statistics Individual coefficients are statistically significant at the 10%, 15%, or "*1% significance level Let, and ASZ denote the slope coefficient on the size of the house and the predicted change in the house rent associated with a small change in the size of the house (ASZ), respectively Suppose the researcher wants to see the effect of an increase in size of house by 9 sq ft on house rent According to the regression in column (1), the 95% confidence interval for , ASZ will be (Round your answer to two decimal places) Suppose that the researcher wants to test the hypothesis , ASZ=0 using the calculated confidence interval. As the hypothesized value off, ASZ interval for P, ASZ, she would the hypothesis P, ASZ=0 in the calculated confidence According to the regression in column (4), the 95% confidence interval for A, ASZ will be
households within a one km radius (1) 2.12 (0.98) Inflation rate in the economy (x) 2014-2018 no Years State effects? Time effects? Clustered standard errors? n 2014-2018 yes no yes 150 no no 150 1.01 (0.79) 2014-2018 yes yes yes 150 2014-2018 yes yes yes 150 2014-2018 yes yes yes 150 Statistics and p-values on Joint Hypotheses Time effects=0 4.22 10.12 3.48 (0.002) (<0.001) (0.006) Real income of households within a one km radius, inflation rate in the 25.20 economy=0 (<0.001) 2 R? 0.091 0.789 0.791 0.799 0.788 Standard errors are given in parentheses under the coefficients, and p-values are given in parentheses under F-statistics. Individual coefficients are statistically significant at the 10%, 15%, or **1% significance level. Let , and , ASZ denote the slope coefficient on the size of the house and the predicted change in the house rent associated with a small change in the size of the house (ASZ), respectively. Suppose the researcher wants to see the effect of an increase in size of house by 9 sq ft on house rent According to the regression in column (1), the 95% confidence interval for P, ASZ will be (Round your answer to two decimal places) in the calculated confidence Suppose that the researcher wants to test the hypothesis P, ASZ = 0 using the calculated confidence interval. As the hypothesized value of P, ASZ interval for P, ASZ, she would the hypothesis P, ASZ = 0. According to the regression in column (4), the 95% confidence interval for B, ASZ will be O. ) (Round your answer to two decimal places Enter a minus sign if your answer is negative) The hypothesized value of P, ASZ, O, in the calculated confidence interval for P, ASZ So the researcher would the hypothesis P, ASZ = 0. Which of the following statements are true regarding the specifications given in the above table? (Check all that apply) A. A $1 increase in the average real income of households within a 1 km radius of the house is associated with an increase in the price of the house by $2.12. The decrease in the value of the slope coefficient on SZ from column (1) to column (2) after including state effects was due to the elimination of the effect of omitted variables that differ B. across entities but are constant over time The sensitivity of the estimated coefficient on SZ to including the economic variables, combined with the statistical significance of the coefficients on those variables in column (4), C. indicates that they should remain in the base specification D. The high value of R in column (3) implies that the time foxed effects account for a large amount of the variation in the data, ?