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 given by yˆy^ = 118.90 + 0.12x + 52.60d. a-1. Compute the predicted price (in $1,000s) of a house with ocean views and square footage of 2,000. (Do not round intermediate calculations. Round your final answer to 2 decimal places.) a-2. Compute the predicted price (in $1,000s) of a house with ocean views and square footage of 3,000. (Do not round intermediate calculations. Round your final answer to 2 decimal places.) b-1. Compute the predicted price (in $1,000s) of a house without ocean views and square footage of 2,000. (Do not round intermediate calculations. Round your final answer to 2 decimal places.) b-2. Compute the predicted price (in $1,000s) of a house without ocean views and square footage of 3,000. (Do not round intermediate calculations. Round your final answer to 2 decimal places.) c. Discuss the impact of ocean views on the house price. multiple choice An ocean view increases the value of house price by approximately 52.60 thousand dollars. An ocean view decreases the value of house price by approximately 12%. An ocean view decreases the value of house price by approximately 52.60 thousand dollars. An ocean view increases the value of house price by approximately 12%.
House price y is estimated as a
a-1. Compute the predicted price (in $1,000s) of a house with ocean views and square footage of 2,000. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
a-2. Compute the predicted price (in $1,000s) of a house with ocean views and square footage of 3,000. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
b-1. Compute the predicted price (in $1,000s) of a house without ocean views and square footage of 2,000. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
b-2. Compute the predicted price (in $1,000s) of a house without ocean views and square footage of 3,000. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
c. Discuss the impact of ocean views on the house price.
multiple choice
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An ocean view increases the value of house price by approximately 52.60 thousand dollars.
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An ocean view decreases the value of house price by approximately 12%.
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An ocean view decreases the value of house price by approximately 52.60 thousand dollars.
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An ocean view increases the value of house price by approximately 12%.
rev: 02_25_2021_QC_CS-254524
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