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Consider the monthly rent (Rent in $) of a home in Ann Arbor, Michigan, as a function of the number of bedrooms (Beds), the number of bathrooms (Baths), and square footage (Sqft). Epicture Click here for the Excel Data File a. Estimate: Rent = 69 + 61Beds + 62Baths + 63Sqft + ɛ. (Round your answers to 2 decimal places.) Rent = Bed + Bath + Sqft b-1. Which of the predictor variables is most likely to be the cause of changing variability? O Beds because it is likely correlated with Rent. O Baths because its distribution tends to be highly skewed. O Sqft because the variability of rent tends to increase with square footage. b-2. Discuss the consequences of changing variability (heteroskedasticity). O OLS estimators and their standard errors are both biased. O OLS estimators are biased but their standard errors are unbiased. O OLS estimators are unbiased but their standard errors are biased.

Consider the monthly rent (Rent in $) of a home in Ann Arbor, Michigan, as a function of the number of bedrooms (Beds), the number of bathrooms (Baths), and square footage (Sqft). Epicture Click here for the Excel Data File a. Estimate: Rent = 69 + 61Beds + 62Baths + 63Sqft + ɛ. (Round your answers to 2 decimal places.) Rent = Bed + Bath + Sqft b-1. Which of the predictor variables is most likely to be the cause of changing variability? O Beds because it is likely correlated with Rent. O Baths because its distribution tends to be highly skewed. O Sqft because the variability of rent tends to increase with square footage. b-2. Discuss the consequences of changing variability (heteroskedasticity). O OLS estimators and their standard errors are both biased. O OLS estimators are biased but their standard errors are unbiased. O OLS estimators are unbiased but their standard errors are biased.

A First Course in Probability (10th Edition)
A First Course in Probability (10th Edition)
10th Edition
ISBN:9780134753119
Author:Sheldon Ross
Publisher:Sheldon Ross
Chapter1: Combinatorial Analysis
Section: Chapter Questions
Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...
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Consider the monthly rent (Rent in $) of a home in Ann Arbor, Michigan, as a function of the number of bedrooms (Beds), the number of bathrooms (Baths), and square footage (Sqft). Epicture Click here for the Excel Data File a. Estimate: Rent = 69 + 61Beds + 62Baths + 63Sqft + ɛ. (Round your answers to 2 decimal places.) Rent = Bed + Bath + Sqft b-1. Which of the predictor variables is most likely to be the cause of changing variability? Beds because it is likely correlated with Rent. O Baths because its distribution tends to be highly skewed. O Sqft because the variability of rent tends to increase with square footage. b-2. Discuss the consequences of changing variability (heteroskedasticity). OLS estimators and their standard errors are both biased. O OLS estimators are biased but their standard errors are unbiased. O OLS estimators are unbiased but their standard errors are biased.
Transcribed Image Text:Consider the monthly rent (Rent in $) of a home in Ann Arbor, Michigan, as a function of the number of bedrooms (Beds), the number of bathrooms (Baths), and square footage (Sqft). Epicture Click here for the Excel Data File a. Estimate: Rent = 69 + 61Beds + 62Baths + 63Sqft + ɛ. (Round your answers to 2 decimal places.) Rent = Bed + Bath + Sqft b-1. Which of the predictor variables is most likely to be the cause of changing variability? Beds because it is likely correlated with Rent. O Baths because its distribution tends to be highly skewed. O Sqft because the variability of rent tends to increase with square footage. b-2. Discuss the consequences of changing variability (heteroskedasticity). OLS estimators and their standard errors are both biased. O OLS estimators are biased but their standard errors are unbiased. O OLS estimators are unbiased but their standard errors are biased.
Rent Beds Baths Sqft Rent Beds Baths Sqft 645 1 1 500 1084 2 2 1163 675 1 648 1100 2 1020 760 1 1 700 1100 2 2 1150 800 1 903 1185 2 2 1225 820 1 1 817 1245 3 2 1368 850 2 920 1275 2 1400 855 1 1 900 1275 2 1350 859 1 886 1400 1 1185 900 1 1.5 1000 1450 2 2 1200 905 2 1 920 1500 3 2 1412 905 876 1518 3 3 1700 929 1 920 1600 1 1440 960 2 1 975 1635 3 3 1460 975 2 2 1100 1635 3 3 1460 990 1 1.5 940 1650 3 1.5 1170 995 1 1000 1750 1.5 1944 1029 2 1299 1950 4 2.5 2265 1039 2 2 1164 1975 4 1700 1049 2 2 1180 2200 4 4319 1050 2 2 1162 2400 3 2.5 2700 2. 3. 3. 3. 3. 3. 2. 2. 2. 2.
Transcribed Image Text:Rent Beds Baths Sqft Rent Beds Baths Sqft 645 1 1 500 1084 2 2 1163 675 1 648 1100 2 1020 760 1 1 700 1100 2 2 1150 800 1 903 1185 2 2 1225 820 1 1 817 1245 3 2 1368 850 2 920 1275 2 1400 855 1 1 900 1275 2 1350 859 1 886 1400 1 1185 900 1 1.5 1000 1450 2 2 1200 905 2 1 920 1500 3 2 1412 905 876 1518 3 3 1700 929 1 920 1600 1 1440 960 2 1 975 1635 3 3 1460 975 2 2 1100 1635 3 3 1460 990 1 1.5 940 1650 3 1.5 1170 995 1 1000 1750 1.5 1944 1029 2 1299 1950 4 2.5 2265 1039 2 2 1164 1975 4 1700 1049 2 2 1180 2200 4 4319 1050 2 2 1162 2400 3 2.5 2700 2. 3. 3. 3. 3. 3. 2. 2. 2. 2.
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