For Exercises 11.59 to 11.61, see page 568; for 11.62 and 11.63, see page 571; for 11.64 to 11.66, see pages 474–575; for 11.67 and 11.68, see page 577; for 11.69 to 11.72, see page 580.

Question 11.64

11.64 Find the means.

CASE 11.3 Using the data set for Example 11.21, find the mean price for the homes that have three or more bedrooms and the mean price for those that do not.

  1. Compare these sample means with the predicted values given in Example 11.21.
  2. What is the difference between the mean price of the homes in the sample that have three or more bedrooms and the mean price of those that do not? Verify that this difference is the coefficient for the indicator variable Bed3 in the regression in Example 11.21.

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