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

question 212

Short Answer

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 effect of living in San Francisco rather than Los Angeles is to increase the mean demand by an estimated .

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Definitions:

Distribution

In statistics, the way in which values of a variable or dataset are spread out or distributed across possible values.

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The difference between the 75th and 25th percentiles of a dataset, representing the middle 50%.

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The action of engaging in games that are played on electronic devices such as computers, consoles, and mobile phones.

Frequency Distribution

A summary of data showing the number of instances that each value occurs.