Below is some of the regression output from a regression of the amount rental houses on an island rent for (expressed in thousands of $'s) based on the size of the house (expressed in square feet), whether the house has an ocean front view (VIEW = 1 if it has an ocean front view and = 0 if not), and an interaction term between the ocean front view dummy variable and the size of the house. If the estimated equation is: Price = 1474 + 0.31*Size + 1885*View + 0.10*(Size*View)
Below is some of the regression output from a regression of the amount rental houses on an island rent for (expressed in thousands of $'s) based on the size of the house (expressed in square feet), whether the house has an ocean front view (VIEW = 1 if it has an ocean front view and = 0 if not), and an interaction term between the ocean front view dummy variable and the size of the house. If the estimated equation is: Price = 1474 + 0.31*Size + 1885*View + 0.10*(Size*View)
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28) Below is some of the regression output from a regression of the amount rental houses on an island rent for (expressed in thousands of $'s) based on the size of the house (expressed in square feet), whether the house has an ocean front view (VIEW = 1 if it has an ocean front view and = 0 if not), and an interaction term between the ocean front view dummy variable and the size of the house. If the estimated equation is:
Price = 1474 + 0.31*Size + 1885*View + 0.10*(Size*View)
Suppose you just built a house with an ocean front view that is 3900 square feet and you want to decide how much to rent it for. What is the predicted price of a house that is 3900 square feet and has an ocean front view?
(please round to 1 decimal places)
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