Suppose that a researcher, by using a sample of transactions of residential houses, wants to estimate how the price of the houses is affected by the presence of an elevator in the building. To this end, he regresses the price of the house in thousands euro, price, on the dummy elevator indicating the presence of the elevator (dummy equal to 1) or not (dummy equal to 0): price; = ao +a1 elevator; + u; The OLS estimates are (standard errors in round brackets below the corresponding coefficient): price; = 53.802 + 73.068 elevator; R2 = 0.036 (19.256) (10.735) A 95% confidence interval for the coefficient of elevator, assuming the 3 OLS assumptions hold, would be: O (a) [52.03; 94.11] O (b) [49.34; 96.79] O (c) [55.46; 90.67] O (d) [55.46; 96.79]
Suppose that a researcher, by using a sample of transactions of residential houses, wants to estimate how the price of the houses is affected by the presence of an elevator in the building. To this end, he regresses the price of the house in thousands euro, price, on the dummy elevator indicating the presence of the elevator (dummy equal to 1) or not (dummy equal to 0): price; = ao +a1 elevator; + u; The OLS estimates are (standard errors in round brackets below the corresponding coefficient): price; = 53.802 + 73.068 elevator; R2 = 0.036 (19.256) (10.735) A 95% confidence interval for the coefficient of elevator, assuming the 3 OLS assumptions hold, would be: O (a) [52.03; 94.11] O (b) [49.34; 96.79] O (c) [55.46; 90.67] O (d) [55.46; 96.79]
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![11
Suppose that a researcher, by using a sample of transactions of residential houses, wants to estimate how the price of the houses is affected by the
presence of an elevator in the building. To this end, he regresses the price of the house in thousands euro, price, on the dummy elevator indicating the
presence of the elevator (dummy equal to 1) or not (dummy equal to 0):
on
ta
price;
= a0 +a1 elevator; + u;
o max.:
The OLS estimates are (standard errors in round brackets below the corresponding coefficient):
rassegna
= 53.802 + 73.068 elevator;
(19.256)
price;
R2 = 0.036
(10.735)
A 95% confidence interval for the coefficient of elevator, assuming the 3 OLS assumptions hold, would be:
O (a) [52.03; 94.11]
O (b) [49.34; 96.79]
O (c) [55.46; 90.67]
O (d) [55.46; 96.79]
Precedente
Successivo](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc9e2016c-ea78-468b-a450-4f2783b17e95%2F35d1a102-ecd1-48eb-9261-6d3f811f3d17%2F8wjuv9m_processed.jpeg&w=3840&q=75)
Transcribed Image Text:11
Suppose that a researcher, by using a sample of transactions of residential houses, wants to estimate how the price of the houses is affected by the
presence of an elevator in the building. To this end, he regresses the price of the house in thousands euro, price, on the dummy elevator indicating the
presence of the elevator (dummy equal to 1) or not (dummy equal to 0):
on
ta
price;
= a0 +a1 elevator; + u;
o max.:
The OLS estimates are (standard errors in round brackets below the corresponding coefficient):
rassegna
= 53.802 + 73.068 elevator;
(19.256)
price;
R2 = 0.036
(10.735)
A 95% confidence interval for the coefficient of elevator, assuming the 3 OLS assumptions hold, would be:
O (a) [52.03; 94.11]
O (b) [49.34; 96.79]
O (c) [55.46; 90.67]
O (d) [55.46; 96.79]
Precedente
Successivo
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