Instruction 13 $$Y = 10 + 5 X _ { 1 } + 8 X _ { 2 }$$

question 92

Multiple Choice

Instruction 13.40
An econometrician is interested in evaluating the relation of demand for building materials to mortgage rates in Sydney and Melbourne. He believes that the appropriate model is
$$Y = 10 + 5 X _ { 1 } + 8 X _ { 2 }$$
where
$\begin{array} { l } x _ { 1 } = \text { mortgage rate in } \% \\x _ { 2 } = 1 \text { if Sydney, } 0 \text { if Melbourne } \\Y = \text { demand in } \$ 100 \text { per capita }\end{array}$
-Referring to Instruction 13.40,the fitted model for predicting demand in Melbourne is ______.

• A) 15 + 8X 2
• B) 10 + 13X 1
• C) 18 + 5X 2
• D) 10 + 5X 1

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Definitions:

Clumped Dispersion

A pattern of population distribution in which individuals are aggregated in patches, often due to environmental factors or social interactions, enhancing survival.

Patchy Distribution

A spatial distribution pattern where entities are clustered in several small areas, separated by areas with no or low occurrences of these entities.

Growth Rate

The rate at which an organism or any of its parts increases in size or number over a specific period.

Population

A group of individuals of the same species living and interacting in the same geographical area.