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TABLE 14-13 An Econometrician Is Interested in Evaluating the Relationship of Demand

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TABLE 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 + 5X₁ + 8X₂
where X₁ = mortgage rate in %
X₂ = 1 if SF, 0 if LA
Y = demand in $100 per capita
-Referring to Table 14-13, the fitted model for predicting demand in San Francisco is ________.


Definitions:

Pentaerythritol Tetranitrate

An explosive compound better known as PETN, used both in military and industrial applications, with a formula of C5H8N4O12.

Acronym

A word formed from the initial letters of a phrase, making it easier to remember or say.

Shockwave

A sharp change in pressure, temperature, and density moving through a medium, typically caused by an object moving faster than the speed of sound in that medium.

High Explosives

Substances that detonate, decomposing extremely rapidly and producing a shock wave with high energy output.

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