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Could you please help answering questions 1 and 2 using Eviews data provided. Thanks. Data and context for Questions 1, 2 and 3 You will
Could you please help answering questions 1 and 2 using Eviews data provided. Thanks.
Data and context for Questions 1, 2 and 3 You will use the data le br5 available in csv and Eviews format (.wfl) on Moodle to answer these question. The data provides prices and characteristics of a sample of houses. The variables are as follows: 0 price: Selling price in thousand dollars 0 baths: Number of bathrooms 0 bedrooms: Number of bedrooms 0 sqft: Total living area (total size) of the house in hundreds of square feet I age: age of each house in years \fView Proc Object Print Name Freeze Estimate Forecast Stats Resids Dependent Variable: PRICE Method: Least Squares Date: 09/28/21 Time: 14:06 Sample: 1 900 Included observations: 900 Variable Coefficient Std. Error t-Statistic Prob. C -62.46140 9. 182401 -6.802295 0.0000 SQFT 7.916557 0.348160 22.73831 0.0000 AGE -0.577210 0. 138497 -4. 167680 0.0000 BATHS 23.13072 5.660916 4.086038 0.0000 R-squared 0.629735 Mean dependent var 151.2452 Adjusted R-squared 0.628495 S.D. dependent var 111.4407 S.E. of regression 67.92448 Akaike info criterion 11.27910 Sum squared resid 4133906. Schwarz criterion 11.30045 Log likelihood -5071.597 Hannan-Quinn criter. 11.28726 F-statistic 507.9623 Durbin-Watson stat 1.979329 Prob(F-statistic) 0.000000Question 1 (7 marks) [a] (2 marks) Estimate the following model using least squares. Report the result in full AND provide Eviews output. Price.- = 31 + 32mm + 33858.- + Babathsi + 55 (1) {b} (5 mks) Interpret the estimated coefcient for soft, age and baths. Is the Sign of each ooeicient what you expected? Why? Question 2 (6 marks): FOR ETF2100 ONLY Based on the model in question 1(a) above, test at the 5% level of signicance the null hypothesis that a decrease in total living area by 100 square feet has the same effect on house price as a 10 year increase in the house age, other things being constant. Use a tstatistic approach and write down all the steps used to conduct. your test. You can use Eviews to calculate the test statistic and obtain the t-eritieal valueStep by Step Solution
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