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

question 297

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 San Francisco is_.

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

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Definitions:

Mean

A type of average calculated by summing values and dividing that sum by the number of values.

Average Scores

The mean value calculated by adding all the scores together and dividing by the number of scores.

Dependent-Samples T-Test

A statistical procedure used to compare the means of two related groups, indicating whether there's a significant difference under the assumption of normally distributed differences.

Research Hypothesis

A specific, testable prediction about the expected outcome of a study, often implying a relationship between variables.