Question: Use the data in HPRICE1.RAW for this exercise. (i) Estimate the model price = (0 + (1 lotsize + (2 sqrft + (3 bdrms +

Use the data in HPRICE1.RAW for this exercise.
(i) Estimate the model
price = (0 + (1 lotsize + (2 sqrft + (3 bdrms + u
and report the results in the usual form, including the standard error of the regression. Obtain predicated price, when we plug in lotsize = 10,000, sqrft = 2,300, and bdrms = 4; round this price to the nearest dollar.
(ii) Run a regression that allows you to put a 95% confidence interval around the predicated value in part (i). Your predication will differ somewhat due to rounding error.
(iii) Let price0 be the unknown future selling price of the house with the characteristics used in parts (i) and (ii). Find a 95% CI for price0 and comment on the width of this confidence interval.

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i ii iii The estimated equation where price is in dollars is price 217703 2068 lotsize 12278 sqrft 2... View full answer

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