7.7 Question 6.5 reported the following regression (where standard errors have been added):

a. Is the coefficient on BDR statistically significantly different from zero?

b. Typically four-bedroom houses sell for more than three-bedroom houses. Is this consistent with your answer to (a), and with the regression in general?

c. A homeowner purchases 2500 square feet from an adjacent lot. Construct a 95% confident interval for the change in the value of their house.

d. Lot size is measured in square feet. Do you think that another scale might be more appropriate? Why or why not?

e. The F-statistic for omitting BDR and Age from the regression is F = 2.38. Are the coefficients on BDR and Age statistically different from zero at the 10% level?

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109.70.567BDR + 26.9Bath + 0.239Hsize + 0.005Lsize Price (22.1) (1.23) +0.1 Age (0.23) - (12.23) (9.76) (0.021) 56.9Poor, R2 = 0.85, SER = 45.8 (0.00072)