Imagine you are doing a hedonic analysis of different types of pollution and housing values. You have
Question:
Imagine you are doing a hedonic analysis of different types of pollution and housing values. You have the following equation:
Housing Value = B0 + B1 Rooms + B2 Distance to the city center + B3 Age of the housing unit + B4 Lot Size + B5 Traffic Noise + B6 Concentrations of PM5 + B7 Construction Size + B8 Baths
Rooms = number of room of the house
Distance to the city center = miles to the city center
Age of housing unit = age in years of the house
Lot size = square footage of the lot where the house is located
Traffic Noise = NEF units of noise
Concentrations of PM5 = amount of PM5 ppm
Construction size = square footage of the construction
Baths = number of baths in the house
Where
B0=28,831; B1=71; B2=-16; B3=-54; B4=52; B5=-32; B6=-64; B7=80; B8=94
According to this information if amount of noise increases by 34 units, what would be the change in the value of the house? (if the values of the house increases entere the number as positive if it decreases enter it as negative)
Auditing and Assurance services an integrated approach
ISBN: 978-0132575959
14th Edition
Authors: Alvin a. arens, Randal j. elder, Mark s. Beasley