We take a random sample of the properties sold in Manhattan during the last 12 months....

 

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We take a random sample of the properties sold in Manhattan during the last 12 months. We run the following linear regression for this sample. . Price = bo+ b Age (1) The results table is as follows: Regression Table Age (year) Constant N R2 Adjusted R2 Residual Std. Error F Statistic Notes: Sale Price (USD) -1.820 (4.428) 1,656,822.000 (1,041,194.000) 500 0.145 0.071 1,021,016.000 (df - 1) 0.169 (dr -1; 1) ===== ***Significant at the 1 percent level. **Significant at the 5 percent level. *Significant at the 10 percent level. a) Based on the results table, what are the values for bo and b, in equation 1? b) What is the interpretation of b, (discuss it given the value of the b1 in the results table). c) Based on the results table, what is the expected price of a property in Manhattan which is 20 years old. We take a random sample of the properties sold in Manhattan during the last 12 months. We run the following linear regression for this sample. . Price = bo+ b Age (1) The results table is as follows: Regression Table Age (year) Constant N R2 Adjusted R2 Residual Std. Error F Statistic Notes: Sale Price (USD) -1.820 (4.428) 1,656,822.000 (1,041,194.000) 500 0.145 0.071 1,021,016.000 (df - 1) 0.169 (dr -1; 1) ===== ***Significant at the 1 percent level. **Significant at the 5 percent level. *Significant at the 10 percent level. a) Based on the results table, what are the values for bo and b, in equation 1? b) What is the interpretation of b, (discuss it given the value of the b1 in the results table). c) Based on the results table, what is the expected price of a property in Manhattan which is 20 years old.

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a Is b1 the coefficient for age significant at 1 percent level What does this imply ANS No the coeff... View the full answer