In Hawaii, Proceedings Are Under Way to Enable Private Citizens $$y = \text { Sale price of property (\$ thousands) }$$

question 21

Essay

In Hawaii, proceedings are under way to enable private citizens to own the property that their homes are built on. In prior years, only estates were permitted to own land, and homeowners leased the land from the estate. In order to comply with the new law, a large Hawaiian estate wants to use regression analysis to estimate the fair market value of the land. The following variables are proposed: $$y = \text { Sale price of property (\$ thousands) }$$
$x _ { 2 } = 1$ if property near Cove, 0 if not Write a regression model relating the sale price of a property to the qualitative variable x. Interpret all the ?s in the model.