Please interpret the parameter estimate for the lot size variable in the core regression (regression 1, 3 = 0.146).What effect does an increase in the lot size have on its price?(Hint:please be careful with the units)

Regression 1 (Core regression):

ln() = 1 + 2i + 3ln() + 4 + 52 + 6ln() + 7 + 8 + ln():natural logarithm function

ParameterStandard Error ofVariable Estimate ( ) Parameter Estimate (( )) t p-value of t

Constant

244.9069 60.73357 4.03248 6.96E-05

SQFT

0.00017 1.63E-05 10.41908 5.54E-22

()

0.145776 0.022413 6.504084 3.14E-10

-0.24011 0.06187 -3.88083 0.000127

^

6.18E-05 1.57E-05 3.9282 0.000106

()

0.016019 0.035124 0.456066 0.648663

0.142644 0.018751 7.607393 3.4E-13

0.00649 0.007964 0.814997 0.415702

R Squared

0.8574 Explained Sum of Squares (ESS)

20.712

3.445

24.157

F Statistic (Model as a Whole)

265.4 (p-value:<0.00001)

Residual Sum of Squares (RSS)

Sample size 317

Total Sum of Squares (TSS)