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

question 64

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 predicted demand in San Francisco when the mortgage rate is 10% is per capita________.

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Definitions:

Culturally

Pertains to the customs, beliefs, arts, institutions, and all other products of human work and thought considered as a unit or characteristic of a particular community or population.

Economically

Pertains to the aspects or matters related to the economy, encompassing production, distribution, and consumption of goods and services.

Politically

Pertaining to politics, it relates to the practices, theories, and policies associated with governing a society or community, including the activities of the state or political actors.

Cultural Imperialism

The practice of promoting and imposing a culture, usually of politically and economically dominant nations over less powerful societies, often leading to the undermining of local cultures.