4. The following regression model has been estimated from a sample size of 42: P =...

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4. The following regression model has been estimated from a sample size of 42: P = 52.3510+ 0.1388S; + 15.3250C; P = home price in 000s of dollars, S = size of house in square feet, and C = 1 if the house is located in a cul-de-sac, 0 otherwise. Assume all the coefficients are statistically significant. (a) [3 points] How would you interpret bo (i.e., 52.3510)? (b) [3 points] On average, how much would a house with 2,000 square feet and located in a cul-de-sac cost? (c) [3 points] How much would it cost, on average, to get an additional 500 square feet? 4. The following regression model has been estimated from a sample size of 42: P = 52.3510+ 0.1388S; + 15.3250C; P = home price in 000s of dollars, S = size of house in square feet, and C = 1 if the house is located in a cul-de-sac, 0 otherwise. Assume all the coefficients are statistically significant. (a) [3 points] How would you interpret bo (i.e., 52.3510)? (b) [3 points] On average, how much would a house with 2,000 square feet and located in a cul-de-sac cost? (c) [3 points] How much would it cost, on average, to get an additional 500 square feet?

Answer rating: 100% (QA)

a The intercept term represented by 0 52351 indicates the estimated average home p... View the full answer