Econometrics For Finance

The file sockton4.dat contains data on 1500 houses sold in Stockton, CA during 1996-1998. Variable descriptions are in the file stockton4.def.

1. Estimate a linear regression SPRICE= η1 + η2LGELOT + e with dependent variable SPRICE and independent variable the indicator LGRLOT which identifies house on larger lots.

Please provide the excel results and interpret the results, the estimated intercept and estimated coefficient of the indicator variable LGRLOT.


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