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Researchers frequently work in teams to help minimize the risk of bias. In the discussion this week, you will work in assigned to a research team of
Researchers frequently work in teams to help minimize the risk of bias. In the discussion this week, you will work in assigned to a research team of approximately four members to build an econometric model for your paper. This econometric model will test the realtor's theory that location is the most important factor in determining the value of a home. Simply stated this theory is "location, location, location." To test this hypothesis, include variables that estimate the value of the home by the home's characteristics (e.g., number of rooms or bathrooms) and the neighborhood's characteristics (e.g., noise, traffic, crime). There is no one correctly specified model that you will be evaluated on, but you should use this discussion to justify which variables are include in your model and evaluate the overall fit of the econometric model to the simple theory put forth by the real estate industry.