TABLE 14-13
An econometrician is interested in evaluating the relationship of demand for building materials to mortgage rates in Los Angeles and San Francisco.He believes that the appropriate model is
Y = 10 + 5X₁ + 8X₂
where X₁ = mortgage rate in %
X₂ = 1 if SF,0 if LA
Y = demand in $100 per capita
-Referring to Table 14-13,the fitted model for predicting demand in San Francisco is ________.

Question

Quizplus · Accepted Answer

The Answer of TABLE 14-13 An econometrician is interested in evaluating the relationship of demand for building materials to mortgage rates in Los Angeles and San Francisco.He believes that the appropriate model is Y = 10 + 5X 1 + 8X 2 where X 1 = mortgage rate in % X 2 = 1 if SF,0 if LA Y = demand in $100 per capita -Referring to Table 14-13,the fitted model for predicting demand in San Francisco is ________. A)10 + 5X₁ B)10 + 13X₁ C)15 + 8X₂ D)18 + 5X₁

TABLE 14-13 An Econometrician Is Interested in Evaluating the Relationship of Demand