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%.

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018

18th Edition

ISBN:9780079039897

Author:Carter

Publisher:Carter

Chapter9: Quadratic Functions And Equations

Section9.8: Analyzing Functions With Successive Differences

Problem 32HP

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Question

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%.