, b, c

Algebra & Trigonometry with Analytic Geometry
13th Edition
ISBN:9781133382119
Author:Swokowski
Publisher:Swokowski
Chapter9: Systems Of Equations And Inequalities
Section9.4: Linear Programming
Problem 2E
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A, b, c
House price y is estimated as a function of the square footage of a house x, a dummy variable d that equals 1 if the house has ocean
views and 0 otherwise; and the interaction variable xd. The estimated house price, measured in $1,000s, is given by
= 80 + 0.12x+ 40d+ 0.01xd.
a. Compute the predicted price of a house with ocean views and square footage of 2,000 and 3,000, respectively. (Enter your
answers in thousands.)
Square Footage
2,000
thousand
3,000
thousand
b. Compute the predicted price of a house without ocean views and square footage of 2,000 and 3,000, respectively. (Enter your
answers in thousands.)
Square Footage
2,000
thousand
3,000
thousand
Transcribed Image Text:House price y is estimated as a function of the square footage of a house x, a dummy variable d that equals 1 if the house has ocean views and 0 otherwise; and the interaction variable xd. The estimated house price, measured in $1,000s, is given by = 80 + 0.12x+ 40d+ 0.01xd. a. Compute the predicted price of a house with ocean views and square footage of 2,000 and 3,000, respectively. (Enter your answers in thousands.) Square Footage 2,000 thousand 3,000 thousand b. Compute the predicted price of a house without ocean views and square footage of 2,000 and 3,000, respectively. (Enter your answers in thousands.) Square Footage 2,000 thousand 3,000 thousand
E. Discuss the impact of ocean views on the house price.
O As square footage increases, the price difference between houses with and without ocean views becomes larger as wel.
O As square footage increases, the price difference between houses with and without ocean views remains the same.
O As square footage decreases, the price difference between houses with and without ocean views increases.
O As square footage increases, the price of houses without an ocean view grows more quickly than the price of houses with an
ocean view.
Transcribed Image Text:E. Discuss the impact of ocean views on the house price. O As square footage increases, the price difference between houses with and without ocean views becomes larger as wel. O As square footage increases, the price difference between houses with and without ocean views remains the same. O As square footage decreases, the price difference between houses with and without ocean views increases. O As square footage increases, the price of houses without an ocean view grows more quickly than the price of houses with an ocean view.
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