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Introductory Econometrics 4th Edition by Jeffrey Wooldridge
Edition 4ISBN: 978-0324660609Introductory Econometrics 4th Edition by Jeffrey Wooldridge
Edition 4ISBN: 978-0324660609 Exercise 11
Use the data in HPRICE1.RAW for this exercise.
(i) Estimate the model
price = 0 + 1 lotsize + 2 sqrft + 3 bdrms + u
and report the results in the usual form, including the standard error of the regression. Obtain predicted price, when we plug in lotsize = 10,000, sqrft = 2,300, and bdrms = 4; round this price to the nearest dollar.
(ii) Run a regression that allows you to put a 95% confidence interval around the predicted value in part (i). Note that your prediction will differ somewhat due to rounding error.
(iii) Let price0 be the unknown future selling price of the house with the characteristicsused in parts (i) and (ii). Find a 95% CI for price 0 and comment on the width of this confidence interval.
(i) Estimate the model
price = 0 + 1 lotsize + 2 sqrft + 3 bdrms + u
and report the results in the usual form, including the standard error of the regression. Obtain predicted price, when we plug in lotsize = 10,000, sqrft = 2,300, and bdrms = 4; round this price to the nearest dollar.
(ii) Run a regression that allows you to put a 95% confidence interval around the predicted value in part (i). Note that your prediction will differ somewhat due to rounding error.
(iii) Let price0 be the unknown future selling price of the house with the characteristicsused in parts (i) and (ii). Find a 95% CI for price 0 and comment on the width of this confidence interval.
Explanation
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Consider the provided HPRICE1.RAW to sol...
Introductory Econometrics 4th Edition by Jeffrey Wooldridge
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