Question
Imagine you are doing a hedonic analysis of different types of pollution and housing values. You have the following equation: Housing Value = B0 +
Imagine you are doing a hedonic analysis of different types of pollution and housing values. You have the following equation: Housing Value = B0 + B1 Rooms + B2 Distance to the city center + B3 Age of the housing unit + B4 Lot Size + B5 Traffic Noise + B6 Concentrations of PM5 + B7 Construction Size + B8 Baths Rooms = number of room of the house Distance to the city center = miles to the city center Age of housing unit = age in years of the house Lot size = square footage of the lot where the house is located Traffic Noise = NEF units of noise Concentrations of PM5 = amount of PM5 ppm Construction size = square footage of the construction Baths = number of baths in the house Where B0=22,242; B1=30; B2=-70; B3=-89; B4=40; B5=-11; B6=-47; B7=20; B8=26 According to this information what would be the change in the house value if a house is located 135 miles closer to the city center (if the values of the house increases entere the number as positive if it decreases enter it as negative)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started