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(a) suppose that a homeowner converts part of an existing family room in her house into a new bathroom. what is the expected increase in the value of the house?
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(a) suppose that a homeowner converts part of an existing family room in her house into a new bathroom. what is the expected increase in the value of the house?

User StenaviN
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1 Answer

4 votes

Answer: The increase value of the house in thousands dollars will be $23400

Step-by-step explanation:

In this scenario, Things to be note are:

(1) only the bathroom number has an increase of 1.

(2) the remaining regressors are the same.

(3) Initial price and the current price only differ in BATH

Therefore,

23.4(BATH+1) - 23.4BATH = 23.4

Hence, the increase value of the house in thousands dollars is $23400

User Senthilkumar
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