Suppose you obtained the following regression results, where the starred (*) coefficients are statistically significant. What could you say about the bases of product differentiation in this market? (Hint: A regression coefficient is statistically significant when it is so large that its effect is very unlikely to have emerged by chance.)

House Price = 125,000 * + 15,000 * (More than three bedrooms)

+ $18,000 * (More than 3,500 square feet)

+ $150 (Has plumbing) + $180 (Has lawn)

+ 17,000 * (Lot larger than 1/2 acre)

How much would you expect to pay for a four-bedroom, 3,800-square-foot house on a oneacre lot? How much for a four-bedroom, 2,700-square-foot house on a quarter-acre lot? Do these results say anything about the sustainability of competitive advantages in this market?