) A researcher used the following empirical model to study the determinants of housing prices in Nairobi.

= 0 + 11 + 22 + 33

Where: Y = house prices

X₁= Number of bedrooms

X₂= size in square feet

X₃= Annual demand of housing

₀= the intercept, ₁, ₂, ₃ are parameters to be estimated

The Findings of the study (the estimated Model) is shown below

= 109524 + 163651₁ + 283.7₂ + 11.74₃

SE(63420)(24167)(9.67)(2.14)

i)Explain in words the meaning of the numeric value (the coefficients) of X1 and

X3.

ii)Obtain the t-values and determine the significance of each of the independent variable

iii)What is the effect of an additional one bedroom to cost of houses in Nairobi?