Introduction to Econometrics 3rd Edition by James Stock, Mark Watson

Exercise 12

Question 6.5 reported the following regression (where standard errors have been added):

a. Is the coefficient on BDR statistically significantly different from zero
b. Typically five-bedroom houses sell for much more than two-bedroom houses. Is this consistent with your answer to (a) and with the regression more generally
c. A homeowner purchases 2000 square feet from an adjacent lot. Construct a 99% confident interval for the change in the value of her house.
d. Lot size is measured in square feet. Do you think that another scale might be more appropriate Why or why not
e. The F -statistic for omitting BDR and Age from the regression is F = 0.08. Are the coefficients on BDR and Age statistically different from zero at the 10% level