Question

A realtor is trying to predict the selling price of houses in Greenville (in thousands of dollars) as a function of size (measured in thousands of square feet) and the number of bedrooms (BR). Part of the regression output is provided below, based on a sample of 20 homes. Some of the information has been omitted. The estimated coefficient for Size is approximately

Variable Coefficients Standard t-Stat
Error
Intercept 13 4.5
Size 2.2 2.1
BR 6.8 2
a. 4.6
b. 1.0
c. 6.6
d. 6.2

Answer 1

estimated coefficient for size = 4.6

Explanation:

We have given that

Variable Coefficients Standard Error t-Stat

Intercept 13 4.5

Size 2.2 2.1

BR 6.8 2

The standard error = 2.2

T stat= 2.1

Formula:. t stat = estimated coefficient/ standard error

Estimated coefficient= t stat* standard error

Estimated coefficient= 2.1*2.2

=4.62

≈4.6

Thus, estimated coefficient for size = 4.6