House price y is estimated as a function of the square footage of a house x; a dummy variable d that equals 1 if the house has ocean views and 0 otherwise; and the interaction variable xd. The estimated house price, measured in $1,000s, is given by ŷ = 80 + 0.12x + 40d + 0.01xd.

a. Compute the predicted price of a house with ocean views and square footage of 2,000 and 3,000, respectively.    

b. Compute the predicted price of a house without ocean views and square footage of 2,000 and 3,000, respectively.

c. Discuss the impact of ocean views on the house price.