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Questions 14-15 are based on the following information. A real estate team collected some sample of home prices in Montreal, Toronto, Ottawa, and Vancouver and
Questions 14-15 are based on the following information. A real estate team collected some sample of home prices in Montreal, Toronto, Ottawa, and Vancouver and want to investigate whether location has impact on home prices. To do that, they use dummy variables to represent the city by excluding Ottawa, and below is the output of the regression. Coefficients P-value Intercept 600000 9.9E-13 Montreal -100000 0.031822 Vancouver 310000 1.81E-06 Toronto 296000 3.21E-06 14. Suppose instead of excluding Ottawa, we exclude Toronto and have the equation Price = A + B * Montreal + C * Vancouver + D * Ottawa What is the value of A, B, C, D? A) A = 896000, B = -396000, C = 14000, D = -296000 B) A = 600000, B = -100000, C = 310000, D = 296000 C) A = 896000, B = -100000, C = 310000, D = -296000 D) A = 600000, B = -396000, C = 14000, D = 296000 E) Not enough information. Answer: A
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