You want to examine how the median housing price (in dollars) in a community is related to the average lot size (square-feet) of houses in the community.
- a) Suppose you want to estimate the percent change in median housing price when you increase the average lot size by one square-foot. Write out the regression model you would use, assuming that there is an intercept.
- b) Write out the formula for your estimate of the effect in part (a).
- c) If we had instead reported median housing price in thousands of dollars and average lot size
- in square-inches, write out the formula for your new estimate of the effect in part (a) and compare it to your formula in part (b).