A Regression Equation That Predicts the Price of Homes in Thousands

question 65

Multiple Choice

A regression equation that predicts the price of homes in thousands of dollars is _t = 24.6 + 0.055x₁ - 3.6x₂,where x₂ is a dummy variable that represents whether the house in on a busy street or not.Here x₂ = 1 means the house is on a busy street and x₂ = 0 means it is not.Based on this information,which of the following statements is true?

• A)On average,homes that are on busy streets are worth $3600 less than homes that are not on busy streets.
• B)On average,homes that are on busy streets are worth $3.6 less than homes that are not on busy streets.
• C)On average,homes that are on busy streets are worth $3600 more than homes that are not on busy streets.
• D)On average,homes that are on busy streets are worth $3.6 more than homes that are not on busy streets.

---

Definitions:

Cognitive Psychologist

A professional who studies mental processes such as perception, memory, and problem-solving.

Behavioral Psychologist

A professional who studies and applies principles of learning and behavior to understand and modify human actions.

Sociocultural Psychologist

A professional who studies how societal and cultural influences affect individual behaviors and mental processes.

Social-Cognitive Learning Theorists

Scholars who study how people learn by observing others, emphasizing the role of cognitive processes.