A Researcher Has Developed the Following Regression Equation to Predict

Multiple Choice

A researcher has developed the following regression equation to predict the prices of luxurious Oceanside condominium units, = 40 + 0.15 Size + 50 View,where Price = the price of a unit (in $1,000s) ,Size = the square footage (in sq.feet) ,View = a dummy variable taking on 1 for an ocean view unit,and 0 for a bay view unit.Which of the following is the predicted price of an ocean view unit with 1,500 square feet?

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