It is argued that one of the factors that determines the price of a house is the longitude coordinate of the house. For example, the house price in Penrith with a longitude of 150.69 E can be cheaper than the house price in Watson Bay with the longitude of 151.28 E.

Suppose the simple regression equation to predict the price of a house (in $'000) based on its longitude (in E) is given by:

Price = -501,000 + 3,327 Longitude

Predict the price of a house with a longitude of 151.16 E