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

---

Definitions:

Gravitropism

Directional response to gravity.

Pollinator

An animal that facilitates pollination by moving pollen; an animal pollination vector.

Unscented

Refers to a product or substance that does not have a perceptible smell, often used in the context of personal care items or household products.

Attract

The act or capability of drawing something in, either by physical means, like gravity, or through other qualities like beauty, smell, or functionality.