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  = 118.90 + 0.12x + 52.60d.
a. Compute the predicted price of a house with ocean views and square footage of 2,000 and 3,000, respectively.
b. Compute the predicted price of a house without ocean views and square footage of 2,000 and 3,000, respectively.
c. Discuss the impact of ocean views on the house price.



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  • CreatedJanuary 28, 2015
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