8. Run the following regression asModel 3:

log(Price) = a +b1SqFt +b2Bedrooms +b3Bathrooms +b4Offers +b5Brick +b6East +b7West

(Recall that, "log" refers to natural logarithms.)

Include an screenshot of the model output.

9. From the output for Model 3, what is the value ofb7? Provide an economic interpretation forb7.

10. Suppose a homeowner adds an extension to her house in the form of a 400 sq ft. bedroom. According to Model 3, what is the increase in the predicted selling price of her house? (Be careful with units.)

Home	Price	SqFt	Bedrooms	Bathrooms	Offers	Brick	Neighborhood
1	$553,500	1790	2	2	2	No	North
2	$572,000	2030	4	2	3	No	East
3	$575,000	1740	3	2	1	Yes	East
4	$474,500	1980	3	2	3	No	East
5	$599,000	2130	3	3	3	No	East
6	$573,000	1780	3	2	2	No	North
7	$746,000	1830	3	3	3	Yes	West
8	$751,500	2160	4	2	2	No	West
9	$596,000	2110	4	2	3	No	East
10	$520,000	1730	3	3	3	No	East
11	$664,500	2030	3	2	3	Yes	East
12	$620,000	1870	2	2	2	Yes	East
13	$513,000	1910	3	2	4	No	North
14	$632,500	2150	3	3	5	Yes	North
15	$843,000	2590	4	3	4	No	West
16	$716,000	1780	4	2	1	No	West
17	$736,500	2190	3	3	4	Yes	East
18	$418,000	1990	3	3	4	No	North
19	$563,000	1700	2	2	1	Yes	East
20	$817,000	1920	3	3	2	Yes	West
21	$581,000	1790	3	2	3	No	East
22	$569,000	2000	3	2	4	No	North
23	$458,500	1690	3	2	3	No	North
24	$535,500	1820	3	2	3	Yes	North
25	$788,000	2210	4	3	2	Yes	East
26	$746,500	2290	4	3	3	No	North
27	$647,000	2000	4	2	3	No	West
28	$496,500	1700	3	2	2	No	East
29	$345,500	1600	2	2	3	No	North
30	$908,000	2040	4	3	1	Yes	West
31	$893,000	2250	4	3	3	Yes	West
32	$566,500	1930	2	2	2	Yes	North
33	$681,000	2250	3	3	3	Yes	East
34	$701,000	2280	5	3	4	Yes	East
35	$589,000	2000	2	2	3	No	North
36	$585,500	2080	3	3	3	No	North
37	$587,500	1880	2	2	2	No	North
38	$732,000	2420	4	3	4	No	West
39	$644,500	1720	3	2	1	No	West
40	$541,000	1740	3	2	2	No	North
41	$533,000	1560	2	2	1	No	East
42	$644,000	1840	4	3	2	Yes	West
43	$528,000	1990	2	2	3	No	East
44	$776,000	1920	3	2	1	Yes	East
45	$823,500	1940	3	3	2	Yes	West
46	$516,000	1810	3	2	3	No	East
47	$654,000	1990	2	3	2	Yes	East
48	$451,500	2050	3	2	6	No	North
49	$579,500	1980	2	2	2	No	East
50	$539,500	1700	3	2	3	Yes	North
51	$761,500	2100	3	2	3	Yes	East
52	$455,500	1860	2	2	3	No	North
53	$587,000	2150	2	3	4	No	North
54	$654,000	2100	3	2	3	No	North
55	$406,500	1650	3	2	3	No	North
56	$630,500	1720	2	2	2	Yes	East
57	$706,500	2190	3	2	3	Yes	East
58	$739,500	2240	4	3	3	No	West
59	$672,500	1840	3	3	1	No	West
60	$766,000	2090	4	2	1	No	West
61	$867,500	2200	3	3	1	No	West
62	$504,500	1610	2	2	2	No	North
63	$757,500	2220	4	3	2	No	West
64	$602,500	1910	2	3	2	No	East
65	$650,500	1860	3	2	2	No	West
66	$561,500	1450	2	2	1	Yes	North
67	$631,000	2210	3	3	4	No	North
68	$759,500	2040	4	3	3	No	East
69	$468,000	2140	3	2	4	Yes	North
70	$798,000	2080	4	3	3	No	West
71	$787,500	1950	3	3	3	Yes	West
72	$781,000	2160	4	2	1	No	West
73	$536,500	1650	3	2	3	No	North
74	$628,500	2040	3	2	2	No	East
75	$698,000	2140	3	3	3	No	West
76	$534,500	1900	2	2	2	No	North
77	$607,000	1930	3	2	2	No	West
78	$883,500	2280	4	3	3	Yes	West
79	$606,500	2130	3	2	3	No	North
80	$669,000	1780	4	2	1	No	West
81	$719,000	2190	3	3	4	Yes	East
82	$918,500	2140	4	3	2	Yes	West
83	$797,000	2050	2	2	1	Yes	West
84	$738,500	2410	3	3	2	No	East
85	$452,500	1520	2	2	3	No	North
86	$900,500	2250	4	3	2	Yes	West
87	$513,500	1900	4	2	4	No	North
88	$859,500	1880	3	3	1	Yes	West
89	$638,500	1930	3	3	2	No	North
90	$489,000	2010	2	2	4	No	North
91	$713,500	1920	4	2	2	No	West
92	$582,500	2150	3	2	2	No	East
93	$674,000	2110	3	2	2	No	West
94	$785,500	2080	3	3	2	No	East
95	$798,000	2150	4	3	3	Yes	West
96	$767,500	1970	2	2	1	Yes	West
97	$666,500	2440	3	3	3	No	East
98	$636,000	2000	2	2	1	Yes	East
99	$705,500	2060	3	2	1	No	West
100	$839,000	2080	3	3	2	Yes	West
101	$516,000	2010	3	2	5	No	North
102	$615,500	2260	3	3	5	No	East
103	$684,000	2410	3	3	4	No	East
104	$1,012,000	2440	4	3	3	Yes	West
105	$411,500	1910	3	2	4	No	East
106	$691,500	2530	4	3	4	No	West
107	$542,500	2130	3	2	4	No	North
108	$673,000	1890	3	2	1	Yes	East
109	$591,000	1990	3	3	3	Yes	East
110	$543,500	2110	3	2	3	No	East
111	$558,000	1710	2	2	1	No	North
112	$574,500	1740	2	2	2	No	North
113	$624,000	1940	2	2	2	Yes	West
114	$583,500	2000	3	2	3	Yes	North
115	$622,500	2010	4	3	2	No	East
116	$512,500	1900	3	3	3	No	North
117	$979,500	2290	5	4	1	Yes	West
118	$589,000	1920	3	2	2	No	North
119	$755,000	1950	3	2	3	Yes	North
120	$548,500	1920	2	2	4	No	North
121	$552,000	1930	2	3	3	No	North
122	$528,000	1930	3	3	3	No	East
123	$730,000	2060	2	2	1	Yes	East
124	$599,500	1900	3	3	3	Yes	East
125	$743,500	2160	4	3	3	Yes	East
126	$567,500	2070	2	2	2	No	North
127	$713,500	2020	3	3	1	No	West
128	$623,000	2250	3	2	4	No	North