TABLE 14-14
An econometrician is interested in evaluating the relation 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 14-14, the fitted model for predicting demand in San Francisco is .
A) 10 + 13X1
B) 18 + 5X1
C) 10 + 5X1
D) 15 + 8X2

Question

TABLE 14-14 
An econometrician is interested in evaluating the relation 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 14-14, the fitted model for predicting demand in San Francisco is .
A) 10 + 13X1
B) 18 + 5X1
C) 10 + 5X1
D) 15 + 8X2

Quizplus · Accepted Answer

The Answer of  TABLE 14-14 
An econometrician is interested in evaluating the relation 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 14-14, the fitted model for predicting demand in San Francisco is .
A) 10 + 13X1
B) 18 + 5X1
C) 10 + 5X1
D) 15 + 8X2

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