BUS173 Assignment. College of Business & IT Batkhela, Malakand Agency BUSINESS MGT607

BUS-173
Lab Assignment
Spring-20
Marks: 20
Instructions: assignment has to be typed & you must attach the regression output results with
your assignment
 A real estate expert wanted to find the relationship between the sales price of houses and
various characteristics of the houses. She collected data on four variables, recorded in the
accompanying excel file. The four variables are:
 Price: sales price of house in thousands of dollars
 Lot size: size of the lot in acres
 Living area: living area in square feet
 Age: Age of house in years
Using Stata find the regression of price on lot size, living area and age. Using the solution
obtained answer the following questions:
1. Indicate whether you expect a positive or negative relationship between the
dependent variable and the independent variables.
2. Write the estimated regression equation. Are the signs of