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Suppose that a researcher, by using a sample of transactions of residential houses, wants to estimate how the price of the houses is affected by

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Suppose that a researcher, by using a sample of transactions of residential houses, wants to estimate how the price of the houses is affected by the presence of an elevator in the building. To this end, he wants to regress the price of the house in thousands euro, price, on the dummy elevator indicating the presence of the elevator (dummy equal to 1) or not (dummy equal to 0). Unfortunately, he makes a mistake so that he uses the original dummy divided by 100, so a variable that takes value 0.01 if there is an elevator in the building and 0 if not. How the estimated value of the coefficient of the dummy will be affected by this mistake: O (a) It will be multiplied by 100 (b) It will be divided by 100 O (c) It will change according to the proportion of flats in buildings with and without elevator O (d) None of the above nte Successivo

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