# Help in analysing the coefficients

• November 17th 2012, 06:38 AM
entrepreneurforum.co.uk
Help in analysing the coefficients
Can someone help me to analyse these coefficients

$Saleprice = -62936.05+ -28152.85Bedrooms(i)+ -1729.382HalfBaths(i)+ 29036.28FullBaths(i)+ 133.2546LivingArea(i)+ 19080.43Condition(i)+339.6787PctCollege(i)+ 2.108055Age(i)+ 2196.120LotSize(i)+8098.126Fireplace(i)+ ε$

Do they have the expected signs? I don't think they do as bedrooms has a negative sign.... so as the sale price increases the number of bedrooms decrease......

thanks,

Matt
• November 17th 2012, 12:30 PM
SpringFan25
Re: Help in analysing the coefficients
assuming "sale price" is price of a residential house, then yes, you would expect the bedroom coefficient to be negative.

i would consider two things:
(i)Is the coefficient significantly negative?
(ii)i notice there is no variable for location...perhaps the larger houses in your same just tend to be in the deprived areas. you can probably ignore this comment if "pctcollege" is an affluence variable.