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

question 237

Short Answer

TABLE 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 + 5X1 + 8X2
where X1 = mortgage rate in %
X2 = 1 if SF, 0 if LA
Y = demand in $100 per capita
-Referring to Table 13-13, the effect of living in San Francisco rather than Los Angeles is to increase the mean demand by an estimated ________ per capita.

---

Definitions:

Atomic Symbol

A one or two-letter abbreviation derived from the English or Latin name of an element, representing it in the periodic table.

Atomic Symbol

A one or two-letter notation derived from the Latin name of an element, used to represent it in the periodic table and chemical equations.

Bromine

A chemical element with the symbol Br and atomic number 35, known as a reddish-brown liquid at room temperature and part of the halogen group.