(Round intermediate calculations to at least 4 decimal places.) House price y is
ID: 3063790 • Letter: #
Question
(Round intermediate calculations to at least 4 decimal places.) House price y is estimated as a function of the square footage of a house x and a dummy variable d that equals 1 if the house has ocean views. The estimated house price, measured in $1,000s, is gi 118.60+0.14x+58.03d. a-1. Compute the predicted price (in $1,000s) of a house with ocean views and square footage of 2,000. Round your answer to 2 decimal places.) Predicted price a-2. Compute the predicted price (in $1,000s) of a house with ocean views and square footage of 3,000. Round your answer to 2 decimal places.) Predicted price b-1. Compute the predicted price (in $1,000s) of a house without ocean views and square footage of 2,000. (Round your answer to 2 decimal places.) Predicted price On $1.0008) of a house without ocean views and square footage 3,000. (Round your answer to 2 decimal places.) of c. Discuss the impact of ocean views on the house price. 0OAn ocean view increases the value of house price at the given level (58.03 thousand dollars). An ocean view decreases the value of house price at the given level (58.03 thousand dolilars).Explanation / Answer
a-1) predicted price =118.6+0.14*2000+58.03*1=456.63
a-2) predicted price =118.6+0.14*3000+58.03*1=596.63
b-1) predicted price =118.6+0.14*2000+58.03*0=398.60
b-2)predicted price =118.6+0.14*3000+58.03*0=538.60
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