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 yˆy^ = 118.90 + 0.12x + 52.60d. a-1. Compute the predicted price (in $1,000s) of a house with ocean views and square footage of 2,000. (Do not round intermediate calculations. Round your final answer to 2 decimal places.) a-2. Compute the predicted price (in $1,000s) of a house with ocean views and square footage of 3,000. (Do not round intermediate calculations. Round your final answer to 2 decimal places.) b-1. Compute the predicted price (in $1,000s) of a house without ocean views and square footage of 2,000. (Do not round intermediate calculations. Round your final answer to 2 decimal places.) b-2. Compute the predicted price (in $1,000s) of a house without ocean views and square footage of 3,000. (Do not round intermediate calculations. Round your final answer to 2 decimal places.) c. Discuss the impact of ocean views on the house price. multiple choice An ocean view increases the value of house price by approximately 52.60 thousand dollars. An ocean view decreases the value of house price by approximately 12%. An ocean view decreases the value of house price by approximately 52.60 thousand dollars. An ocean view increases the value of house price by approximately 12%.

College Algebra

10th Edition

ISBN:9781337282291

Author:Ron Larson

Publisher:Ron Larson

Chapter2: Functions And Their Graphs

Section2.4: A Library Of Parent Functions

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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 yˆy^ = 118.90 + 0.12x + 52.60d.

a-1. Compute the predicted price (in $1,000s) of a house with ocean views and square footage of 2,000. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

a-2. Compute the predicted price (in $1,000s) of a house with ocean views and square footage of 3,000. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

b-1. Compute the predicted price (in $1,000s) of a house without ocean views and square footage of 2,000. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

b-2. Compute the predicted price (in $1,000s) of a house without ocean views and square footage of 3,000. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

c. Discuss the impact of ocean views on the house price.

multiple choice

An ocean view increases the value of house price by approximately 52.60 thousand dollars.
An ocean view decreases the value of house price by approximately 12%.
An ocean view decreases the value of house price by approximately 52.60 thousand dollars.
An ocean view increases the value of house price by approximately 12%.