Question 5 and 6

QUESTION 5 What can we conclude about the interaction term between pool and view in column (5)? The interaction term is significant at the 10% level and its sign indicates that the impact of installing a pool has a smaller effect on price when the house has a view. The interaction term is significant at the 10% level and its sign indicates that the impact of installing a pool has a larger effect on price when the house has a view. The sign of the interaction term implies that the impact of installing a pool has a smaller effect on price when the house has a view, but the estimate is not statistically significant at the 10% level. d. The sign of the interaction term implies that the impact of installing a pool has a larger effect on price when the house has a view, but the estimate is not statistically significant at the 10% level. QUESTION 6 Regardless of your conclusion in Question 5, and continuing to use column (5), answer the following questions: Find the approximate percent effect of adding a pool on the price of a house with a view. Find the approximate percent effect of adding a pool on the price of a house without a view. Report both answers to one decimal place without a percentage sign.Suppose a researcher collects data on houses that have been sold in a particular neighbourhood over the past year, and obtains the regressions results in the table shown below. This table is used for Questions 1-6. Dependent variable: In(Price) Regressor (1) (2) (3) (4) (5) Size 0.00042 (0.000038) In(Size) 0.69 0.68 0.57 0.69 (0.054) (0.087) (2.03) (0.055) In(Size) 0.0078 (0.14) Bedrooms 0.0036 (0.037) Pool 0.082 0.071 0.071 0.071 0.071 (0.032) (0.034) (0.034) (0.036) (0.035) View 0.037 0.027 0.026 0.027 0.027 (0.029) (0.028) (0.026) (0.029) (0.030) Pool X View 0.0022 (0.10) Condition 0.13 0.12 0.12 0.12 0.12 (0.045) (0.035) (0.035) (0.036) (0.035) Intercept 10.97 6.60 6.63 7.02 6.60 (0.069) (0.39) (0.53) (7.50) (0.40) Summary Statistics SER 0.102 0.098 0.099 0.099 0.099 R2 0.72 0.74 0.73 0.73 0.73 Variable definitions: Price = sale price ($); Size = house size (in square feet); Bedrooms = number of bedrooms; Pool = binary variable (1 if house has a swimming pool, 0 otherwise); View = binary variable (1 if house has a nice view, 0 otherwise); Condition = binary variable (1 if real estate agent reports house is in excellent condition, 0 otherwise)