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

question 22

Multiple Choice

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 Los Angeles is ________.

• A)10 + 5X₁
• B)10 + 13X₁
• C)15 + 8X₂
• D)18 + 5X₂

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Definitions:

Cartilages

Flexible connective tissues found in various forms in the body, serving to construct and support structures such as the ears, nose, and joints.

Ventrally

Pertaining to the belly or underside of an animal or organ.

Dorsally

Positioned towards the back side of an organism or towards the spine in humans.

Laterally

Towards the side; away from the midline of the body.