Exhibit 17

question 95

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 difference in prices of the ocean view and bay view units with the same square footage?

• A)$40,000
• B)$90,000
• C)$500,000
• D)$50,000

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Definitions:

Customers

Persons or organizations that buy products or services from a company.

Supplies Account

An account that tracks the cost of supplies consumed or on hand.

Adjusting Entry

An accounting record entry made at the conclusion of an accounting period to distribute income and expenses to the correct period.

Purchased

The act of acquiring goods or services in exchange for money, often recorded in accounting as an increase in assets or expenses.