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4. (15 points) Data Analysis. In R, install the package wooldridge. (Type in the command window: install.packages(wooldridge)). This will pre-load a bunch of datasets
4. (15 points) Data Analysis. In R, install the package "wooldridge". (Type in the command window: install.packages("wooldridge")). This will pre-load a bunch of datasets into R. a. First load in the dataset 'hprice2'. You can do this by simply writing: data('hprice2') where we would normally load in a dataset. (You don't need to name it anything, it will simply be called hprice2). b. Estimate the model from 3(b) above (i.e. regress price on nox, crime, rooms, dist, and stratio), and report your results in the form of a table. c. Write out your results in equation form. (i.e. write out an equation for price, given your estimates from (b)) d. Interpret the coefficient estimate on nox. Why is it negative? e. Suppose you observe a house with nox = 5, crime = 0.04, rooms = 6.5, dist = 6.2 and stratio = 16. What would your estimate for the sales price of the house be? f. Create a plot of nox against price along with the associated regression line.
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