Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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=28,831; B1=71; B2=-16; B3=-54; B4=52; B5=-32; B6=-64; B7=80; B8=94

According to this information if amount of noise increases by 34 units, what would be the change in the value of the house?  (if the values of the house increases entere the number as positive if it decreases enter it as negative)


Step by Step Solution

3.56 Rating (163 Votes )

There are 3 Steps involved in it

Step: 1

Housing Value B0 B1 Rooms B2 Distance to the city center B3 Age of the housing unit B4 Lot Size B5 T... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing and Assurance services an integrated approach

Authors: Alvin a. arens, Randal j. elder, Mark s. Beasley

14th Edition

133081605, 132575957, 9780133081602, 978-0132575959

More Books

Students also viewed these Marketing questions

Question

How do dividends and earnings and profits relate to each other?

Answered: 1 week ago