2 Given:n = 35 s2 = 22ei (yiy )2 = 1, 000 b1 = 3.2a) Find SSR.b) Find R2c) Findi (xix)23 The following is Statas1 regression output for the regression walkscore = b0 + b1 age of home. The data come from Miami. Walkscore is a number between 0-100 that describes how easy it is to conduct ones aairs on foot near the home. Walkscores are higher for people closer to libraries, restaurants,stores, parks, etc. The age of the home variable is self explanatory.a) When statistical packages report a t-test, the null hypothesis is always that the coecient = 0. Usingthat knowledge, ll in the missing t-values in the table.b) Calculate the 95% condence interval for b0 .2c) Could you reject the null hypothesis H0 : b0 = 36 in favor of the alternative HA : b0 = 36 at the 95%level? What method did you use to determine the answer?d) What percentage of the variation in walkscore is explained by variation in the age of the home?e) What is the predicted walkscore for a home that is brand new?f) The regression shows that we expect older homes to be more walkable than newer homes. What doyou think drives this relationship? Be sure to mention causality.Stata is a statistical software that you will use in ECON306.If youre not sure if youre doing it right, you can calculate it for b1 because that condence interval is given in the table.
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