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House price y is estimated as a function of the square footage of a house x...

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 yˆ = 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. (Round intermediate calculations to at least 4 decimal places. 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 intermediate calculations to at least 4 decimal places. 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 intermediate calculations to at least 4 decimal places. Round your answer to 2 decimal places.)

PREDICTED PRICE: ________

b-2. Compute the predicted price (in $1,000s) of a house without ocean views and square footage of 3,000. (Round intermediate calculations to at least 4 decimal places. Round your answer to 2 decimal places.)

PREDICTED PRICE: ________

c. Discuss the impact of ocean views on the house price.

A. An ocean view increases the value of house price by approximately 52.60 thousand dollars.
B. An ocean view decreases the value of house price by approximately 10% at the given level.

Math   Statistics-And-Probability   
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