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

question 266

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 San Francisco is ________.

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

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Definitions:

Social Facts

Durkheim's concept for societal norms, values, structures, and institutions that exert social control and influence individual behavior.

Empirically Studied

Investigated through the use of observation or experience rather than theory or pure logic, often involving systematic collection and analysis of data.

Coerces

To compel or force someone to do something by using pressure, threats, or intimidation, often implying a lack of free will or choice.

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A term from Émile Durkheim describing traditional societies where social cohesion and integration come from the homogeneity of individuals’ beliefs, values, and practices.