Exhibit 17

question 68

Multiple Choice

Exhibit 17.1.A researcher has developed the following regression equation to predict the prices of luxurious Oceanside condominium units, , where
Price = the price of a unit (in $thousands) ,
Size = the square footage (in square feet) ,
View = a dummy variable taking on 1 for an ocean view unit,and 0 for a bay view unit.
Refer to Exhibit 17.1.What is the predicted price of an ocean view unit with 1500 square feet?

• A)$315,000
• B)$3,150,000
• C)$265,000
• D)$275,000

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