SCENARIO 13-13
an Econometrician Is Interested in Evaluating the Relationship $$Y = 10 + 5 X _ { 1 } + 8 X _ { 2 }$$

question 119

Multiple Choice

SCENARIO 13-13
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 $$Y = 10 + 5 X _ { 1 } + 8 X _ { 2 }$$
where
$$\begin{array} { l } X _ { 1 } = \text { mortgage rate in } \% \\X _ { 2 } = 1 \text { if SF, } 0 \text { if LA } \\Y = \text { demand in } \$ 100 \text { per capita }\end{array}$$
-Referring to SCENARIO 13-13, 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:

Preschool Teachers

Educators specialized in early childhood development who instruct and care for children aged three to five years old.

Savior Complex

A psychological construct where a person believes they are responsible for saving or rescuing others.

Responsive Interactions

Engagements characterized by sensitivity to each other's needs and signals, facilitating mutual understanding and connection.

Good Ratios

Typically refers to favorable or desirable proportions or relationships between different quantities or elements.