1. [70 points] You wish to predict the sale price of single-family residences in

Question

1. [70 points] You wish to predict the sale price of single-family residences in Massachusetts using property features (commonly called a “hedonic pricing model”).  You collect price and property features data on properties sold in the state for the year 2010 and obtain the following regression:

Pricei = 14407.60 – 759.92*houseagei + .24*lotsizei + 354.35*bldareai + 12015.61*roomsi + µi

              (6433.23)   (89.67)                       (.115)              (265.39)                   (8516.47)

Observations = 2691         R2 = 0.49             F = 65.10

Where:

houseage = age of the house (in years)

lotsize = total square feet of the land

bldarea = total square feet of the interior of the house

rooms = total number of rooms in the house

[6 points] How would you categorize, or label, this dataset?  Defend your answer

Explanation / Answer

How would you categorize, or label, this dataset?

I would categorize this dataset by each variable

4 variable that means 4 categories

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