Economics Question


I’m working on a statistics question and need an explanation and answer to help me learn.

The data file stockton5_small contains observations on 1200 houses sold in Stockton, California, during 1996–1998.

In this Stata file, which is in Brightspace, you are given data on price = selling price of homes (thousands of dollars), and

livarea = living area (hundreds of square feet), which is an indicator of lot size. The homes are also classified as large and

small lots. In the data file, the variable lgelot=1 if the lot is large and 0 if small. Use Stata to answer the following


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