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 predicted demand in Melbourne when the mortgage rate is 8% is ___________ 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 predicted demand in Melbourne when the mortgage rate is 8% is ___________ per capita.

Instruction 13 -Referring to Instruction 13