Instruction 13 -Referring to Instruction 13

question 66

Short Answer

Instruction 13.33
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
$\begin{array}{l}Y = 10 + 5 X _ { 1 } + 8 X _ { 2 }\\\\\text { where } \begin{aligned}X _ { 1 } & = \text { mortgage rate in } \% \\X _ { 2 } & = 1 \text { if Sydney, } 0 \text { if Melbourne } \\Y & = \text { demand in } \$ 100 \text { per capita }\end{aligned}\end{array}$
-Referring to Instruction 13.33,the predicted demand in Melbourne when the mortgage rate is 8% is ___________ per capita.

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Definitions:

Commission

A fee paid to an agent or employee for transacting a piece of business or performing a service.

Sales

The exchange of a commodity for money; the action of selling something.

Classified Ads

Short advertisements placed in a newspaper, magazine, or online, usually categorized by topic, such as jobs, real estate, and services.

Flat Fee

A pricing structure where a single fixed rate is charged for a service, regardless of usage or time required.