Answered step by step
Verified Expert Solution
Question
1 Approved Answer
would each Coefficient be predicted to be either positive, negative, or ambiguous? (8 points) You have gained access to a dataset that includes commercial real
would each Coefficient be predicted to be either positive, negative, or ambiguous?
(8 points) You have gained access to a dataset that includes commercial real estate transaction that took place during the 2017-2019 time period in Miami, FL and in San Francisco, CA. After general data clean up you ran the following regression: Price = a + PSQFT + BYear + 3 Class + B4DumMiami Where: Price is the price in dollars paid for each property transacted. SQFT is the size of each property transacted in squared feet. Year takes a value of 0, 1 or 2 if the transaction took place during the year 2017, 2018 or 2019, respectively. Class takes a value of 0, 1 or 2 if the transacted property is of class A, B or C, respectively. DumMiami is a dummy variable that takes a value of 1 if the property transacted is locate in Miami and 0 otherwise. For each of the coefficients ((B, B, B3 and 4) please predict whether you expect it to be positive, negative or ambiguous and explain in one sentence.
Step by Step Solution
★★★★★
3.54 Rating (158 Votes )
There are 3 Steps involved in it
Step: 1
Heres the prediction for each coefficient and a brief explanation 1 SQFT Positive We expect a positi...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started