Econometrics: House Princing
i). reg lnprice salemonth floorarea floorarea2 landarea decadeblt doctdrive medhhinc06 goodwater > if floorarea < 260 Source | SS df MS Number of obs = 900-------------+------------------------------ F( 8, 891) = 149.52 Model | 50.1657152 8 6.2707144 Prob > F = 0.0000 Residual | 37.366636 891 .041937863 R-squared = 0.5731————-+—————————— Adj R-squared = 0.5693 Total | 87.5323512 899 .097366353 Root MSE = .20479—————————————————————————— lnprice | Coef. Std. Err. t P>|t| [95% Conf. Interval]————-+—————————————————————- salemonth | .009174 .0020227 4.54 0.000 .0052041 .0131438 floorarea | .008777 .0011286 7.78 0.000 .006562 .0109921 floorarea2 | -.0000141 3.74e-06 -3.79 0.000 -.0000215 -6.81e-06
landarea | -4.50e-06 .0000288 -0.16 0.876 -.000061 .000052 decadeblt | .0010913 .0003927 2.78 0.006 .0003206 .001862 doctdrive | -.0545299 .0073669 -7.40 0.000 -.0689885 -.0400713 medhhinc06 | 5.90e-06 4.77e-07 12.35 0.000 4.96e-06 6.83e-06 goodwater | .0189917 .0245438 0.77 0.439 -.0291788 .0671621 _cons | 9.14248 .7663252 11.93 0.000 7.638467 10.64649——————————————————————————salemonthThe estimated coefficient on salemonth indicates that a house sold during an extra month into the year’s sale price was 0.9216% (e^0.009174 – 1) greater than it would have been if sold during the month before, holding all else constant. This coefficient is statistically significantly different from zero at the 0.1% level of significance.floorareaThe estimated coefficient on floorarea indicates that if house has an extra square meter of floor area, the sale price would increase by 0.8816% (e^0.008777 – 1), holding all else constant. This coefficient is statistically significantly different from zero at the 0.1% level of significance.