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. In all scenarios, round intermediate calculates to 4 decimal places and round your answer to 2 decimal places. What is the predicted price (in $1,000s) of a house with ocean views and 2,000 square feet? What is the predicted price (in $1,000s) or a house without ocean views 2,000 square feet? In $1,000s, how much does an ocean view influence the price of a home?
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. In all scenarios, round intermediate calculates to 4 decimal places and round your answer to 2 decimal places. What is the predicted price (in $1,000s) of a house with ocean views and 2,000 square feet? What is the predicted price (in $1,000s) or a house without ocean views 2,000 square feet? In $1,000s, how much does an ocean view influence the price of a home?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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House
- What is the predicted price (in $1,000s) of a house with ocean views and 2,000 square feet?
- What is the predicted price (in $1,000s) or a house without ocean views 2,000 square feet?
- In $1,000s, how much does an ocean view influence the price of a home?
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