Question
7. You are looking to purchase a house in Norman and want to see if the Tiebout model holds. You personally care a lot about
7. You are looking to purchase a house in Norman and want to see if the Tiebout model holds. You personally care a lot about the local public schools that your (pretend) children would be attending, so you do some house hunting on Zillow to see where you can afford a house, as well as make use of Zillow's School Reviews feature, which presents a map of schools in Norman along with a GreatSchools rating on a scale from1-10 (where 1 is poor and 10 is outstanding). You go through a number of listings and collect a database of about 200 houses currently for sale. In your handcrafted data set is information on asking price, house characteristics (e.g. square footage, lot size, number of bedrooms, year built, flooring, etc.), address, and GreatSchools rating. a. If you were to compute a simple correlation between asking price and GreatSchools rating, what would the Tiebout model predict the sign of the correlation to be? (i.e. positive or negative?)
railroad tracks?
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