FoundationNumeric answer
Pricing houses in logs · Part 1 of 3
You build a model for house sale prices, regressing on and other features. The coefficient on log floor area is 0.8, and the residual standard deviation of log price is 0.3.
Holding everything else fixed, how much more expensive is a house with 10% more floor area, in per cent?
Answer with a number. Fractions, powers and expressions like 23/6 or C(52,5) are read correctly in practice.
The worked solution is in Premium
The answer, the full working and the one idea to take away – for this and all 1,322 questions in the bank. Answer it in practice and your working is marked, with a known mistake named when you make one.
Learn the method
More research case studies questions
- A model’s errors on five cases are 1,−1,2,−2,6.Foundation
- Your churn model feeds a retention offer with a fixed budget.Applied
- You are asked how to validate a demand forecasting model built on three years…Applied
- An opera house expects ticket demand q = 1000−10p at price p and has 800 seats.Applied
- A customer churns with probability 0.3 and is worth $200 if retained.Applied
- Your churn model’s most predictive feature is "number of support calls in the…Applied