SCENARIO 14-13
an Econometrician Is Interested in Evaluating the Relationship $$Y = 10 + 5 X _ { 1 } + 8 X _ { 2 }$$

question 27

Short Answer

SCENARIO 14-13
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
$$\begin{array} { l } \text { where }&\quad X _ { 1 } = \text { mortgage rate in } \% \\&X _ { 2 } = 1 \text { if SF, } 0 \text { if LA } \\&\quad\quad \quad \quad Y = \text { demand in } \$ 100 \text { per capita }\end{array}$$
-Referring to Scenario 14-13, the fitted model for predicting demand in Los Angeles is ________. a) $10 + 5 X _ { 1 }$
b) $10 + 13 X _ { 1 }$
c) $15 + 8 X _ { 2 }$
d) $18 + 5 X _ { 2 }$

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Definitions:

Fornix

A C-shaped bundle of nerve fibers in the brain that acts as a major pathway for information communication within the limbic system.

Fornices

Fornices refer to arch-like structures in the body, notably the series of arches formed by the folding of the vaginal wall and surrounding the cervix.

Vaginal Orifice

The external opening of the vagina, located between the labia minora in the female genitalia.

Mucosa

The moist, inner lining of some organs and body cavities such as the nose, mouth, lungs, and digestive tract, involved in absorption and secretion.