Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 2 The following MLR model was estimated with standardized variables (i.e., the z-scores for the dependent and independent variables). zprice = -.251 zozone

image text in transcribed

Question 2 The following MLR model was estimated with standardized variables (i.e., the z-scores for the dependent and independent variables). zprice = -.251 zozone - .162 zcrime + .480 zrooms zprice = z-score of housing price zozone = z-score of average ozone concentration in the housing community zcrime = z-score of crime rate in the housing community zrooms = z-score of bedroom numbers in the house According to the model, interpret the ceteris paribus effect below: a. Holding other variables constant, one standard deviation increase in ozone concentration is predicted to (increase/decrease) housing price by standard deviations. b. Given the sample standard deviation of price is approximately 10 thousand dollars, if ozone concentration increases by 1 standard deviation, the housing price is predicted to (increase/decrease) by dollars. c. Holding other variables constant, one standard deviation decrease in crime rate in the community is predicted to (increase/decrease) housing price by standard deviations. d. Given the sample standard deviation of price is approximately 10 thousand dollars, if crime rate decreases by 2 standard deviations, the housing price is predicted to (increase/decrease) by dollars.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

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

Differential Equations and Linear Algebra

Authors: Jerry Farlow, James E. Hall, Jean Marie McDill, Beverly H. West

2nd edition

131860615, 978-0131860612

More Books

Students also viewed these Mathematics questions

Question

Where in the hiring process are you?

Answered: 1 week ago