Chapter 20: Problem 10

The quality of the school district can affect house prices in that district. If this statement is true, what should we observe?

Short Answer

Expert verified

Assuming the statement true, changes in the quality of a school district should directly affect house prices. High-quality school districts would have higher house prices compared to lower-quality districts. This correlation implies that people are willing to pay more for homes located within high-quality school districts.

Step by step solution

Understanding the Question

The question is implying a correlation between the quality of a school district and the price of houses in that district. The task involves confirming this implication. The question assumes the statement to be true, which means it is expected that the result of the observations should support this assumption.

Identify factors indicating quality of a school district

The quality of a school is generally judged by factors such as the quality of teachers, students' performance, quality of facilities, school's reputation, etc. These factors can be data points that can be monitored to determine the quality of a school district.

Correlate these factors with house prices

If there is indeed a correlation, one should be able to observe a positive correlation between the quality of the school district and the house prices. This means that a rise in measurement of the quality of the school district would mean a rise in the house prices in that district, and vice versa.

Analyze findings

The final step is to analyze the collected information and the observations made regarding the correlation between the quality of a school district and the prices of houses in that district.

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