A real estate agent wished to estimate the relationship between the sale price of residential properties

1. A real estate agent wished to estimate the relationship between the sale price of residential properties (in $Thous) and the characteristics of the house. The characteristics included in the regression were the age of the house in years, the number of rooms in the house (size), a variable representing the materials used to build the house (1= brick, 0= timber) and a variable representing whether or not the property has a swimming pool (1=yes). The following is an extract from the output produced:

Coefficients

Standard Error

Intercept

55

8.3

Age

-1.3

0.35

Size

7.3

0.92

Material

15

1.75

Pool

12

1.43

By how many dollars (to the nearest whole dollar) does a 6 year old, 11 room timber house with a pool exceed the predicted price of a brand new 9 room brick house with no pool? (Insert a negative sign in your answer if the first house has a lower predicted value than the second).