Consider the Following to Answer the Question(s) Below

question 10

Multiple Choice

Consider the following to answer the question(s) below:
A regression equation that predicts the price of homes in thousands of dollars is = 24.6 + 0.055x1, where x1 is a variable that represents the assessed value of the house and x2 is an indicator variable that represents whether the house is on a busy street (1 = yes, 0 = no) .
-Based on this information, which of the following statements is true?

• A) On average, homes with the same assessed value that are on busy streets are worth $3600 less than homes that are not on busy streets.
• B) For a given assessed value, on average, homes that are on busy streets are worth $360 less than homes that are not on busy streets.
• C) For a given assessed value, on average, homes that are on busy streets are worth $3600 more than homes that are not on busy streets.
• D) On average, homes with the same assessed value that are on busy streets are worth $360 more than homes that are not on busy streets.
• E) For a given assessed value, on average, homes that are on busy streets are worth 24.6 - 3.6 = $19000 less than homes that are not on busy streets.

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Definitions:

Insane

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A contract in which one party makes a promise in exchange for the other party's performance, becoming binding when the performance is completed.

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A legal principle that prevents a party from withdrawing a promise made to a second party if the second party has reasonably relied on that promise to their detriment.