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2. You will be using hedonic pricing to value a property in St. Johns. The target property is 2000 sq feet, has 3 bedrooms,
2. You will be using hedonic pricing to value a property in St. Johns. The target property is 2000 sq feet, has 3 bedrooms, 2 bathrooms, and no garage. Regression results for neighboring (i=1,....,n) properties sold recently as follows: Price; = a+biSq-Feet; + b2Bed Rooms; + b3Baths; + b3Garage-dummy; + errori a: 200 (t-stat=0.2) bi: 200 (t-stat=3.88) b2 10000 (t-stat-4.99) b3: 20000 (t-stat=2.99) Establish the fair price of the target property.
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Principles of managerial finance
Authors: Lawrence J Gitman, Chad J Zutter
12th edition
9780321524133, 132479540, 321524136, 978-0132479547
