Question

6 Using data from 1988 for houses sold in Andover, Massachusetts, from Kiel and McClain (1995),

Answer 1

The study of explanatory or independent differences based on the dependent variable is a simple statistical method. The correlation between two variables is researched in which only the explanatory variable of them would be present, and the further discussion can be defined as follows:

For point (i):

• The log(distances) seem to be optimistic, and their valuation is 0.312, which also means that the cost of a house will rise even as the distance increases.
• In this, the certainly is what everybody expects the better the house from the sewage treatment is from a hygienic viewpoint.

For point (ii):

• In this regard, we cannot use straightforward regression, even as non-biased price estimation might not even be provided.
• The price-distance relationship here is not so much linear.

For point (iii):

• Several factors influence the house's price, the biggest contributor is house length, market nearness or public areas, number of rooms, etc.
• Thus the only influence is not the mere distance from the incinerator. It's one of the factors affecting housing pricing.
• The proximity of markets and places can be connected to the distance from the crematorium.
• However, factors such as house size and the number of stories aren't related to the distance from the incineration plant.

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