Which regressors are statistically significant using a two-tailed test with a nu

Question

Which regressors are statistically significant using a two-tailed test with a null hypothesis of zero? (10 Points) In reviewing the literature, you found a consensus that a 1% increase in nitrous oxide will reduce housing prices by 0.75%. Given the information in Table 1, is there sufficient empirical evidence to support this conclusion? Discuss and provide evidence. (10 Points) 13. Your classmate argues that for a one-room increase in the number of rooms in a house that predicted housing price increases by approximately 35%. Discuss whether your classmate is correct and provide evidence that either supports or rebuts their conclusion. (10 Points) Another classmate argues that a 1% increase in square footage increases predicted housing price by 0.1%. Discuss and provide evidence whether there is sufficient evidence to support your classmate's conclusion. (10 Points) 14. Table 1 Estimation of Log of Housing Prices (Standard errors in parentheses) Model 1 Model 2 Model 3 Log of Nitrous Oxide Log of Square Feet Number of Rooms Intercept 0.15 (0.05) 0.35 9.23 0.19) 7.62 0.13 506 0.26 506 0.40 506 0.51 R-squared

Explanation / Answer

11. When we perform a test for statistical significance from a regression we get a p value in the output .If we are using a significance level of 0.05 will mean that 0.025 will lie on each side of the tail of the distribution .Suppose we are testing the mean value of a sample which should be equal to =x=zero using a t-test.Null hypothesis is that mean=0 ;Two talied test will test if mean is significantly > 0 or significantly less than 0 .The mean is considered significantly different if it is in top 2.5% or bottom 2.5% as we are assuming significance level of 0,05(5%) resulting in p value less than 0.05.

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