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(Round Intermediate calculations to at least 4 decimal places.) House price y is

ID: 3227452 • Letter: #

Question

(Round Intermediate calculations to at least 4 decimal places.) 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 y^hat = 118.59 + 0.18 x + 52.31 d. Compute the predicted price (in $1,000s) of a house with ocean views and square footage of 1, 900. (Round your answer to 2 decimal places.) Predicted price _____ Compute the predicted price (in $1,000s) of a house with ocean views and square footage of 2, 900. (Round your answer to 2 decimal places.) Predicted price _________ Compute the predicted price (in $1,000s) of a house without ocean views and square footage of 1, 900, (Round your answer to 2 decimal places.) Predicted price _______ Compute the predicted price (in $1,000s) of a house without ocean views and square footage of 2.900, (Round your answer to 2 decimal places.) Predicted price _______

Explanation / Answer

y^ = 118.59 + 0.18x + 52.31d

a-1) d = 1

x = 1900

y^ = 118.59 + 0.18 * 1900 + 52.31 * 1 = 512.9

a-2) d = 1

x = 2900

y^ = 118.59 + 0.18 * 2900 + 52.31 * 1 = 692.9

b-1) d = 0

x = 1900

y^ = 118.59 + 0.18 * 1900 + 52.31 * 0 = 460.59

b-2) d = 0

x = 2900

y^ = 118.59 + 0.18 * 2900 + 52.31 * 0 = 640.59