Write down the estimated model and interpret the coefficient on the interaction term. Find the expression for the effect of an additional bathroom on house price and then compute this effect for a house of average lot size. Interpret this result.
Re-estimate the relationship for house prices from part (v) adding the indicator variable on basement as a regressor (i.e. in addition to your quantitative variables, interaction variable and intercept in part (v)). Report the estimates for your model in a table (Excel output table is fine) and write down the estimated model.
Provide a full interpretation of the coefficient for the newly included nominal variable. Comment on the fit of the model you have just estimated and compare it to the fit of the model from part (v). Using the Excel output, what can you say about the validity of the model?
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