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Question: 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 = 116.90 + 0.16x + 52.20d.
a. Compute the predicted price (in $1,000s) of a house with ocean views and square footage of 1,600. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
b. Compute the predicted price (in $1,000s) of a house without ocean views and square footage of 1,600. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
c. Discuss the impact of ocean views on the house price.
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