Using the package “wooldridge’, and the data ‘hprice1’ (in R-Software) to estimate the model price =...

Using the package “wooldridge’, and the data ‘hprice1’ (in R-Software) to estimate the model price = β0 + β1sqrft + β2bdrms + u , where is the house price measured in thousands of dollars.

1. Write out the results in equation form.

2. What is the estimated increase in price for a house with one more bedroom, holding square footage constant?

3. What is the estimated increase in price for a house with an additional bedroom that is 140 square feet in size? Compare this to your answer in part 2

4. What percentage of the variation in price is explained by square footage and number of bedrooms?

5. The first house in the sample has sqrt = 4238 and bdrms = 7. Find the predicted selling price for this house from the OLS regression line.

6. The actual selling price of the first house in the sample was $400,000 (price = 400,000 ). Find the residual for this house. Does it suggest that the buyer underpaid or overpaid for the house?

Expert Solution

orchestra answered 2 years ago

Using a graphing calculator or computer software package, estimate and verify the mathematical solutions for one...

Using a graphing calculator or computer software package, estimate and verify the mathematical solutions for one of the following problems: The following data show the commuting distances and commuting times of six college students to their college campus. Distance in miles 2 15 16 9 21 5 Time in minutes 5 25 30 20 35 10 Determine the correlation coefficient between the commuting distance and the commuting time. Determine whether a correlation exists at a = 0.05. Determine the equation...

Use R statictical software. Load the ISLR package to get the Auto data set. Fit below...

Use R statictical software. Load the ISLR package to get the Auto data set. Fit below non-linear models to the Auto data set. We will treat horsepower as the predictor and mpg as the response. • Fit the cubic spline with 3 knots (25th percentile, 50th percentile, and 75th percentile of horsepower) • Fit the natural spline with 3 knots (25th percentile, 50th percentile, and 75th percentile of horsepower) • Fit the smoothing spline by choosing optimal lambda with cross-validation....

I am using the phbirths data in the faraway package in R. I want to: 1)...

I am using the phbirths data in the faraway package in R. I want to: 1) create a plot of the birth weight vs the gestational age and I want to colour code the points based on the mothers smoking status to determine whether or not smoking affects the babies. 2) fit a simple model (one regression line) along with both the main effects (parallel lines) and interaction (non parallel lines) ANCOVA model to the data and find out which...

Please use R to do it. Using the SATGPA data set in Stat2Data package. Test by...

Please use R to do it. Using the SATGPA data set in Stat2Data package. Test by using α= .05 Question: Test if the proportion of MathSAT greater than VerbalSAT is 0.60 > library(Stat2Data) > data("SATGPA") > data(SATGPA) > SATGPA

Using the Motor Trend Car Road Tests dataset mtcars, in faraway R package, fit a model...

Using the Motor Trend Car Road Tests dataset mtcars, in faraway R package, fit a model with mpg: Miles/(US) gallon as the response and the other variables as predictors. (a) Which variables are statistically significant at the 5% level? For each and every test provide the null and alternative hypotheses, critical region (or rejection region), test statistics and your conclusions. (30) (b) What interpretation should be given to the coefficient for vs: Engine? (3) (c) Compute 90 and 95% confidence...

Software Sales A software company sells three packages, Package A, Package B, and Package C, which...

Software Sales A software company sells three packages, Package A, Package B, and Package C, which retail for $99, $199, and $299, respectively. Quantity discounts are given according to the following table: Quantity Discount 10 through 19 20% ,20 through 49 30% ,50 through 99 40% ,100 or more 50% . Create a C++ program that allows the user to enter the number of units sold for each software package. The application should calculate and display the order amounts and...

Model Summary Model R R Square Adjusted R Square Std. Error of the Estimate 1 .941a...

Model Summary Model R R Square Adjusted R Square Std. Error of the Estimate 1 .941a .885 .872 1.00528 a. Predictors: (Constant), SelfControl, NumStrains ANOVAa Model Sum of Squares df Mean Square F Sig. 1 Regression 132.570 2 66.285 65.590 .000b Residual 17.180 17 1.011 Total 149.750 19 a. Dependent Variable: AgeFirstArrest b. Predictors: (Constant), SelfControl, NumStrains Coefficientsa Model Unstandardized Coefficients Standardized Coefficients t Sig. 95.0% Confidence Interval for B Collinearity Statistics B Std. Error Beta Lower Bound Upper Bound...

Using software with the given data, find and interpret the multiple correlation and Upper R squared...

Using software with the given data, find and interpret the multiple correlation and Upper R squared for the relationship between yequalscollege GPA, x 1equalshigh school GPA, and x 2equalsstudy time. Use both interpretations of Upper R squared as the reduction in prediction error and the percentage of the variability explained. CGPA;HSGPA;Study Time 3.31;3.90;6 3.12;3.80;2 3.62;3.02;4 3.53;3.91;3 3.48;3.58;5 3.76;3.21;3 3.50;3.79;3 2.79;3.17;7 2.88;3.52;5 3.26;3.79;5 3.55;3.89;5 3.48;3.81;6 3.96;3.99;10 2.59;3.30;4 3.50;3.67;10 3.96;3.88;3 3.75;3.48;3 3.66;3.93;3 3.76;4.00;5 3.91;3.51;3 3.10;3.77;2 3.14;3.90;7 3.79;3.50;7 3.68;3.79;4 3.85;3.98;3 3.29;3.48;4 3.12;2.55;11 2.97;3.82;5...

USING R ---locate the pre-loaded MASS package, then load the data frame cats within that packag....

USING R ---locate the pre-loaded MASS package, then load the data frame cats within that packag. This provides data on sex, body weight (in kgs), and heart weight (in grams) for 144 household cats. Load the MASS package with a call to library("MASS"), and access the object directly by entering cats at the console prompt. 1. Fit a least-squares multiple linear regression model using heart weight as the response variable and the other two variables as predictors, and view a...

Consider the beauty dataset from the wooldridge package in R. Suppose you wish to estimate the...

Consider the beauty dataset from the wooldridge package in R. Suppose you wish to estimate the following equation: lwage=β0+β1educ+u Using heteroscedastic-robust standard errors, conduct the hypothesis test H0:β1=0 H1:β1≠0 What is the t-value associated with this test?

Question