SCENARIO 13-13
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 $$Y = 10 + 5 X _ { 1 } + 8 X _ { 2 }$$
where
$$\begin{array} { l }
X _ { 1 } = \text { mortgage rate in } \% \
X _ { 2 } = 1 \text { if SF, } 0 \text { if LA } \
Y = \text { demand in } \$ 100 \text { per capita }
\end{array}$$
-Referring to SCENARIO 13-13, the predicted demand in Los Angeles when the mortgage rate is 8% is .

Question

SCENARIO 13-13
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 $$Y = 10 + 5 X _ { 1 } + 8 X _ { 2 }$$
where
$$\begin{array} { l } 
X _ { 1 } = \text { mortgage rate in } \% \
X _ { 2 } = 1 \text { if SF, } 0 \text { if LA } \
Y = \text { demand in } \$ 100 \text { per capita }
\end{array}$$
-Referring to SCENARIO 13-13, the predicted demand in Los Angeles when the mortgage rate is 8% is .

Quizplus · Accepted Answer

The Answer of SCENARIO 13-13
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 $$Y = 10 + 5 X _ { 1 } + 8 X _ { 2 }$$
where
$$\begin{array} { l } 
X _ { 1 } = \text { mortgage rate in } \% \
X _ { 2 } = 1 \text { if SF, } 0 \text { if LA } \
Y = \text { demand in } \$ 100 \text { per capita }
\end{array}$$
-Referring to SCENARIO 13-13, the predicted demand in Los Angeles when the mortgage rate is 8% is .

SCENARIO 13-13 an Econometrician Is Interested in Evaluating the Relationship Y=10+5X1+8X2Y = 10 + 5 X _ { 1 } + 8 X _ { 2 }Y=10+5X1​+8X2​

SCENARIO 13-13
an Econometrician Is Interested in Evaluating the Relationship $Y = 10 + 5 X _ { 1 } + 8 X _ { 2 }$