Question 4 (10pts) Data were collected from a random sample of 220 homes. Let Price denotes the selling price (in $1000),BDR denotes the number of bedrooms, Bath denotes the number of bathrooms, Hsize denotes the size of the house in square feet, Lsize denotes the lot size in square feet and Poor denotes the condition of the house (binary variable) taking value 1 if the condition of the house is poor. Consider the following regression price=(23.9)119.2+(2.61)0.485BDR+(8.94)23.4Bath+(0.011)0.156Hsize+(0.00048)0.002Lsize+(0.311)0.090Age+(10.5)48.8Poor with SER=41.5 and R2=0.72. Page 2 1. (2pts) Is the coefficient of BDR statistically significantly different from 0 at 5% ? 2. (2pts) Typically five-bedroom houses sell much more than two-bedroom houses. Is this consistent with your answer to (a) and the regression more generally? 3. (2pts) A homeowner purchases 2000 square feet from an adjacent lot. Construct a 99% confidence interval for the change in the value of her house. 4. (2pts) Lot size is measured in square feet. Do you think that another scale might be more appropriate? why or why not? 5. (2pts) The F-statistic for omitting BDR and Age is F=0.08. Are the coefficients for BDR and Age statistically different from 0 at the 10% level? Question 4 (10pts) Data were collected from a random sample of 220 homes. Let Price denotes the selling price (in $1000),BDR denotes the number of bedrooms, Bath denotes the number of bathrooms, Hsize denotes the size of the house in square feet, Lsize denotes the lot size in square feet and Poor denotes the condition of the house (binary variable) taking value 1 if the condition of the house is poor. Consider the following regression price=(23.9)119.2+(2.61)0.485BDR+(8.94)23.4Bath+(0.011)0.156Hsize+(0.00048)0.002Lsize+(0.311)0.090Age+(10.5)48.8Poor with SER=41.5 and R2=0.72. Page 2 1. (2pts) Is the coefficient of BDR statistically significantly different from 0 at 5% ? 2. (2pts) Typically five-bedroom houses sell much more than two-bedroom houses. Is this consistent with your answer to (a) and the regression more generally? 3. (2pts) A homeowner purchases 2000 square feet from an adjacent lot. Construct a 99% confidence interval for the change in the value of her house. 4. (2pts) Lot size is measured in square feet. Do you think that another scale might be more appropriate? why or why not? 5. (2pts) The F-statistic for omitting BDR and Age is F=0.08. Are the coefficients for BDR and Age statistically different from 0 at the 10% level