Question
You are analyzing a Housing Prices Dataset and have a categorical variable for type which has 3 categories Multi-Family, Condo & Residential. You run a
You are analyzing a Housing Prices Dataset and have a categorical variable for type which has 3 categories Multi-Family, Condo & Residential. You run a linear Regression with Price as the Dependent Variable and the dummy variables for Multi-family and Residential. You find that the coefficient of Multi-Family unit is negative. What is the most likely reason that this is the case?
Multi-family units are on average priced less than Condo's
Residential units are on average more expensive than Multi-family units
There is an error in the regression equation
There are possibly too few data points for Multi-family units
Not enough information has been provided
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