RESOURCE AND ENVIRONMENTAL ECONOMICS

Answer the following questions:

(1) Before you run the regression, what are your expectations regarding the signs of the coefficients for the following variables? Also explain briefly why.
a) CHARLES
b) PTRATIO
c) NOX

(2) Calculate the summary (descriptive) statistics for the variables in the model and paste below.
(3) Calculate and report the correlation between the independent variables
(4) Comment briefly on whether the calculated correlation of LSTAT with each of these variables makes logical sense or not, and why: CRIME, INDUS, CHARLES, NOX, ROOMS, AGE
(5) Perform the regression and report your results
(6) What is the R-squared for the model, and what does it imply?
(7) Comment on the coefficient signs, magnitude and statistical significance for the following variables: INDUS, CHARLES, NOX and LSTAT.
(8) Calculate the elasticity of NOX at the sample mean values and report. What is the implication of this elasticity?
(9) If you had to plan this study, what other variables would you collect data on and include in your model?
(10) What other functional forms would you try, and why?
(11) Why not just do a simple correlation between PRICE and NOX? Why do we need to run a regression?

WE ACCEPT