A Regression Equation That Predicts the Price of Homes in Thousands

question 7

True/False

A regression equation that predicts the price of homes in thousands of dollars is = 24.6 + 0.055x₁ - 3.6x₂,where x₂ is a dummy variable that represents whether the house is on a busy street or not.Here x₂ = 1 means the house is on a busy street and x₂ = 0 means it is not.From this we can conclude that on average homes that are on busy streets are worth $3600 more than homes that are not on busy streets.

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To greatly justify or provide sufficient reason for an assertion, claim, or action.

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To express emphatic backing or endorsement of an idea, proposal, or individual.

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The act of rejecting or ignoring a statement or argument without giving it proper consideration or offering sufficient evidence to the contrary.

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Incorrect or misleading rationales presented to justify a conclusion or action.