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Econometrics Assignment 1 Fall 2020

The document presents data on 60 recently sold lakefront lots including the price of each lot, the lot size, number of mature trees on the lot, and distance of the lot to the lake. It asks to find the regression equation using this data, interpret the regression coefficients and R-squared value, and test the overall significance of the regression model. The data provided will be used to build a linear regression model to predict lakefront lot prices based on the key attributes of lot size, number of trees, and distance to the lake.

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Naeem Ahmed Hattar
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83 views

Econometrics Assignment 1 Fall 2020

The document presents data on 60 recently sold lakefront lots including the price of each lot, the lot size, number of mature trees on the lot, and distance of the lot to the lake. It asks to find the regression equation using this data, interpret the regression coefficients and R-squared value, and test the overall significance of the regression model. The data provided will be used to build a linear regression model to predict lakefront lot prices based on the key attributes of lot size, number of trees, and distance to the lake.

Uploaded by

Naeem Ahmed Hattar
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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The Institute of Management Sciences, Lahore

Assignment 1

A developer who specializes in summer cottage properties is considering purchasing a


large tract of land adjoining a lake. The current owner of the tract has already subdivided
the land into separate building lots and has prepared the lots by removing some of the
trees. The developer wants to forecast the value of each lot. From previous experience,
she knows that the most important factors affecting the price of a lot are size, number of
mature trees, and distance to the lake. From a nearby area, she gathers the relevant data
for 60 recently sold lots.
a. Find the regression equation.
b. Interpret the regression coefficient and R2.
c. Test the overall significance of the regression model.

Price Lot size Trees Distance


105.4 41.2 24 42
91.2 44.8 5 71
183.3 21.3 72 43
93.8 43.9 58 14
207.5 57.7 52 12
130.9 33.4 78 26
162.3 31.4 65 51
18.8 27.4 22 0
80.5 26.2 68 83
38.3 40 57 76
71.3 47.6 53 35
55.5 31.6 36 26
85.7 21.6 23 24
110.5 36.3 48 98
85.1 47.2 61 59
78.3 30.5 41 55
27.2 41.8 1 60
70.9 20.6 20 33
101.4 35.3 38 75
133.3 40.1 68 0
117.7 35.6 24 41
49.7 20.6 16 77
49.6 22.4 32 86
83.2 45.8 77 19
81.3 29.4 40 0
152.5 51.7 60 34
112.2 27.2 0 16
37.1 37 50 49
130.2 38.9 48 63
39.1 32.5 25 45
81.9 34 12 0

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24.6 35.8 16 34
101.9 32.9 44 42
117.6 46.4 62 48
148.8 51.9 59 39
60.2 28.9 0 66
43.7 35.2 57 77
113.1 30.4 70 78
38.1 38.3 24 62
89.2 49.2 61 0
3 21.5 46 83
55.8 41.9 10 69
89.7 21.8 79 62
136.1 66.3 56 34
44.7 28.2 73 77
63.2 41.9 64 65
163.4 46.7 69 27
64.1 32.1 12 0
98.7 38.5 59 77
139.9 27.6 0 0
92 47 65 37
66.6 20.7 24 51
16.4 34 12 75
131.9 31.9 76 63
11 28 2 42
27.9 40 52 84
103.5 46.6 26 70
107 23.2 11 83
51.6 46.4 53 44
133.4 32.1 55 98

Page 2 of 2

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