Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

What can we conclude about theinteraction term between pool and view in column (5)? The interaction term is significant at the 10% level and itssign

What can we conclude about theinteraction term between pool and view in column (5)?

The interaction term is significant at the 10% level and itssign indicates that the impact of installing a pool has a smaller effect on price when the house has a view.

The interaction termis significant at the 10% level and itssign 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 the10%level.

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.

image text in transcribed
Dependent variable: In(Price) Regressor (1) (2) (3) (4) (5) Size 0.00042 (0.000038) In(Size) 0.69 0.68 0.57 (0.054) 0.69 (0.087) (2.03) (0.055) In(Size)2 0.0078 (0.14) Bedrooms 0.0036 (0.037) Pool 0.082 0.071 (0.032) 0.071 (0.034) 0.071 (0.034) 0.071 (0.036) (0.035) View 0.037 0.027 (0.029) 0.026 (0.028) 0.027 (0.026) 0.027 (0.029) (0.030) Pool X View 0.0022 (0.10) Condition 0.13 0.12 0.12 (0.045) 0.12 (0.035) (0.035) 0.12 (0.036) (0.035) Intercept 10.97 6.60 (0.069) 6.63 (0.39) 7.02 (0.53) 6.60 (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)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing and Assurance Services

Authors: Timothy Louwers, Robert Ramsay, David Sinason, Jerry Straws

6th edition

978-1259197109, 77632281, 77862341, 1259197107, 9780077632281, 978-0077862343

Students also viewed these Economics questions