the file named br2 needed to be opened by EViews, pls also provide the process of how you get the data
ECON 125
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Homework 1
The file br2.wf1 contains data on 1080 houses sold in Baton Rouge, Louisiana, during mid-2005. The data
include sale price, the house size in square feet, its age, whether it has a pool or fireplace or is on the
waterfront. Also included is an indicator variable TRADITIONAL indicating whether the house style is
traditional or not.
a. Plot house price against house size for houses with traditional style.
b. For a traditional-style houses estimate the linear regression model = 1 + 2 + .
Write down the estimated equation.
c. Interpret the estimates.
ECON 125
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d. Compute the least squares residuals and plot them against SQFT. Do any of the OLS assumptions
appear violated?
e. Test that the slope coefficient is statistically significant at 0.05 level of significance.
f. Test that the slope is positive at 0.01 level of significance.
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