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

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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 y̅ = 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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Essentials Of Business Statistics Communicating With Numbers

ISBN: 9780078020544

1st Edition

Authors: Sanjiv Jaggia, Alison Kelly

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Question Posted: Jan 28, 2015 10:23 AM

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

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a With d 1 and x 2000 1189 0122000 5261 4115 or 411500 With d 1 and x 3000 1189 0123000 5261 5...View the full answer

Essentials Of Business Statistics Communicating With Numbers

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