Suppose in an Attempt to Estimate the Effect of How

question 6

Multiple Choice

Suppose in an attempt to estimate the effect of how listing with a real estate agent impacts a house's selling price you estimate the following regression: Price_i = 10.2 (3.2) + 2.3 (0.8) Agent + -2.9 (0.3) Distance to Downtown_i, where Distance to Downtown is a proxy variable, which can be used to control for the desirability of the location, and the standard errors for each coefficient are reported in parenthesis. How should we interpret the regression results for the coefficient on Agent?

• A) The unconditional correlation between housing prices and house sales with a listing agent are positive.
• B) The unconditional correlation between whether a listing is listed with an agent and how far it is from downtown is negative.
• C) Listings with an agent sell for higher prices holding fixed the desirability of the location of the listing.
• D) None of the answers is correct.

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Definitions:

Copy Information

The act of duplicating data or text from one source to another.

Sentence Fragments

Incomplete sentences lacking either a subject, verb, or complete thought, which can affect clarity.

Anxiety

A feeling of worry, nervousness, or unease, typically about an imminent event or something with an uncertain outcome.

Panic

Sudden uncontrollable fear or anxiety, often causing wildly unthinking behavior.