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

question 91

Multiple Choice

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 + 5X₁ + 8X₂
where X₁ = mortgage rate in %
X₂ = 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

---

Definitions:

Trading Tactics

Strategies and methods used by traders to maximize profits and minimize risks, often involving the analysis of market trends, psychology, and economic indicators.

British Emigrants

Individuals originating from the United Kingdom who relocate to live in another country.

Protests and Petitions

Methods of nonviolent action used by individuals or groups to express opposition to or support for a cause, typically involving public demonstrations or formal requests to authorities.

Parliament

The supreme legislative body in a country, especially in those following the British system, composed of two houses: the upper house (Senate or House of Lords) and the lower house (House of Commons or House of Representatives).