Much research in applied microeconomics and econometrics focuses on the pricing of goods andservices. One common approach involves building a model which the price of a good depends on...

Much research in applied microeconomics and econometrics focuses on the pricing of goods andservices. One common approach involves building a model which the price of a good depends on thecharacteristics of that good. Data set hprice.dta contains data on an application of this so-calledhedonic pricing approach to the housing market. The data contains characteristics on N=546 housessold in Windsor, Canada. The dependent or predicted variable is the selling price of the houses in Canadian dollars with the other variables serving as potential explanatory (independent or predictor)variables.
Using the hprice.dta run a correlation matrix and a simple regression of sale price on each of thefollowing explanatory variables: (1) lot size, (2) number of bedrooms, (3) number of bathrooms and(4) number of stories interpret the output and provide a brief analysis of your findings. Compare theresults of the correlation with the regression models. Using the best regression model, test forheteroskedasticity and make necessary adjustments. Are the results different? If so explain reasonswhy