Instruction 13 -Referring to Instruction 13

question 87

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 Sydney when the mortgage rate is 10% is ___________ per capita.

---

Definitions:

Population Proportion

A measure indicating the ratio of members in a defined category to the total population size.

Interval Estimate

A range of values derived from sample data within which a population parameter is estimated to lie, usually defined by two numbers representing the upper and lower limits.

Population Standard Deviation

A measure of the variability or dispersion of a population dataset, representing the square root of the variance.

Sample Size

The number of observations or data points collected in a subset of a population for the purpose of statistical analysis.