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

---

Definitions:

Abolitionists

Individuals or groups who advocated for the immediate end of slavery and the emancipation of slaves, particularly active in the 19th century.

Emancipation

The act of freeing someone from slavery, servitude, or oppression.

Racial Superiority

The ideology or belief that one race is inherently superior to others, often used to justify unequal treatment and discrimination.

Skull Size

Refers to the measurement of the cranial cavity's volume, which was historically, and inaccurately, used to infer intelligence or racial superiority.