(a). An examination of the means of variables in the data set suggests that houses with more bedrooms tend to be more expensive than houses with fewer bedrooms. However it also suggests that houses with more bedrooms tend to be built on larger lots which may explain their generally higher prices. For a fixed lot size does the number of bedrooms have a positive impact on the average market price of houses with a fixed set of other characteristics?(b). By how much does the average price of a house increase if the lot size is increased by 1 square foot with all other characteristics held constant (you should indicate the uncertainty of your estimate).Requirments:You should provide answers to these questions using econometric modelling techniquesYour written report should should provide a clear statement of your answers to the above questions a clear description of the econometric techniques and results that you used to generate your answers and a clear convincing justification of the techniques that you used. Your main objective is to convince the marker that your results are credible so for every estimator or statistic that you use in your answers you should clearly state the properties that you believe the estimator or statistic has in your application and explain why you think these properties hold in your particular case.a Gretl session file containing your computational work. All models that you have estimated tests that you have conducted plots that you have created etc should be saved as icons in Gretl labelled in such a way that the marker may easily find everything that was generated using Gretl and is mentioned in your written report.
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