You work for a reality firm in Niagara County and want to build a model explaining variation in housing prices to determine the best initial offer for properties about to go on the market. You arrive at the following estimated regression equation: = 40 35.0 2.0 10.0 4.0 100 (5.0) (1.0) (10.0) (4.0) (10.0) N = 30 2 = 0.63 where: = Price of the ith house (in thousands of dollars) = Size of the lot for the ith house (in thousands of square feet) = Age of the ith house in years = Number of bedrooms in the ith house = Dummy variable = 1 if the ith house has a fireplace = Dummy variable = 1 if the ith house is located on the waterfront

a. What sign do you expect for the variables LOT, BED, and WATER? Based on those expectations, create and test the appropriate hypotheses to evaluate these expectations at the 5-percent level.