Use dataset from the sheet “House Selling Price.xls” attached along with this document. In the dataset, ‘P’= price (in 1000 dollars), ‘S’=size (in 1000 square feet), ‘Be’=number of bedroom, ‘Ba’=number of bathrooms and ‘New’=1 if the house is new, ‘New’=0 if the house is not new. Run an OLS regression on ‘P’ with four independent variables: ‘S’, ‘Ba’, ‘Be’ and ‘new’. Answer following questions according to your regression results.
a) What is coefficient for ‘S’?
b) Is ‘Ba’ significant at 5% level?
c) p-value of F test?
d) The price on a new house is how much higher than that of an otherwise similar old house? Is this effect significant at 5% level?
The question belongs to Statistics and it is about the calculation of coefficient, significance at 5% level and p-value of F test for data set about house selling price which includes price in dollars, size in square feet, number of bedrooms, etc. The solution gives calculations for this data set.
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