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The following regression output belongs to the analysis of hotel prices (in thousands) in three German cities. The x variables are square feet, annual profit

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The following regression output belongs to the analysis of hotel prices (in thousands) in three German cities. The x variables are square feet, annual profit (in thousands), city dummy variables and interactions between profit and city dummy variables. There are three cities in the sample: Berlin, Cologne and Munich. The dummy variable Berlin is 1 if the hotel is in Berlin and 0 otherwise. The dummy variable cologne is 1 if the hotel is in Cologne and 0 otherwise. There are also two interaction variables: Profit*Berlin and Profit* Cologne. Complete the following sentence: Every additional thousand dollars of annual profit (increases/decreases) the predicted price of a hotel by thousand dollars if the hotel is in Cologne. decreases; 1.914 decreases: 5765.539 increases; 6.054 increases: 10.743

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