Instruction 13.33
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
$\begin{array}{l}
Y = 10 + 5 X _ { 1 } + 8 X _ { 2 }\\
\text { where } \begin{aligned}
X _ { 1 } & = \text { mortgage rate in } \% \
X _ { 2 } & = 1 \text { if Sydney, } 0 \text { if Melbourne } \
Y & = \text { demand in } \$ 100 \text { per capita }
\end{aligned}
\end{array}$
-Referring to Instruction 13.33,the effect of living in Sydney rather than Melbourne is to increase the mean demand by an estimated ___________ per capita.

Question

Quizplus · Accepted Answer

The Answer of Instruction 13.33
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
$\begin{array}{l}
Y = 10 + 5 X _ { 1 } + 8 X _ { 2 }\\
\text { where } \begin{aligned}
X _ { 1 } & = \text { mortgage rate in } \% \
X _ { 2 } & = 1 \text { if Sydney, } 0 \text { if Melbourne } \
Y & = \text { demand in } \$ 100 \text { per capita }
\end{aligned}
\end{array}$
-Referring to Instruction 13.33,the effect of living in Sydney rather than Melbourne is to increase the mean demand by an estimated ___________ per capita.

Instruction 13 -Referring to Instruction 13