Reference no: EM13580675

a). An examination of the means of variables in the data set suggests that houses with more bedrooms tend to be more expensive than houses with fewer bedrooms. However, it also suggests that houses with more bedrooms tend to be built on larger lots, which may explain their generally higher prices. For a fixed lot size, does the number of bedrooms have a positive impact on the average market price of houses with a fixed set of other characteristics? If so, by how much (and provide an indication of the uncertainty of your estimate)?

(b). By how much does the average price of a house increase if the lot size is increased by 1 square foot, with all other characteristics held constant (you should also indicate the uncertainty of your estimate).