Instruction 13-11
An econometrician is interested in evaluating the relation of demand for building materials to mortgage rates in Sydney and Melbourne.He believes that the appropriate model is
Y = 10 + 5X₁ + 8X₂
where X₁ = mortgage rate in %
X₂ = 1 if Sydney,0 if Melbourne
Y = demand in $100 per capita
-Referring to Instruction 13-11,the fitted model for predicting demand in Sydney is ________.

Question

Quizplus · Accepted Answer

The Answer of Instruction 13-11 An econometrician is interested in evaluating the relation of demand for building materials to mortgage rates in Sydney and Melbourne.He believes that the appropriate model is Y = 10 + 5X 1 + 8X 2 where X 1 = mortgage rate in % X 2 = 1 if Sydney,0 if Melbourne Y = demand in $100 per capita -Referring to Instruction 13-11,the fitted model for predicting demand in Sydney is ________. A)10 + 5X₁ B)10 + 13X₁ C)18 + 5X₁ D)15 + 8X₂

Instruction 13-11 An Econometrician Is Interested in Evaluating the Relation of Demand