House price y is estimated as a function of the square footage of a house x, a dummy variable d that equals 1 if the house has ocean views and 0 otherwise; and the interaction variable xd. The...

A, b, c

Extracted text: House price y is estimated as a function of the square footage of a house x, a dummy variable d that equals 1 if the house has ocean views and 0 otherwise; and the interaction variable xd. The estimated house price, measured in $1,000s, is given by = 80 + 0.12x+ 40d+ 0.01xd. a. Compute the predicted price of a house with ocean views and square footage of 2,000 and 3,000, respectively. (Enter your answers in thousands.) Square Footage 2,000 thousand 3,000 thousand b. Compute the predicted price of a house without ocean views and square footage of 2,000 and 3,000, respectively. (Enter your answers in thousands.) Square Footage 2,000 thousand 3,000 thousand


Extracted text: E. Discuss the impact of ocean views on the house price. O As square footage increases, the price difference between houses with and without ocean views becomes larger as wel. O As square footage increases, the price difference between houses with and without ocean views remains the same. O As square footage decreases, the price difference between houses with and without ocean views increases. O As square footage increases, the price of houses without an ocean view grows more quickly than the price of houses with an ocean view.