Instruction 13-11 An Econometrician Is Interested in Evaluating the Relation of Demand

question 223

Short Answer

Instruction 13-11
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 + 5X₁ + 8X₂
where X₁ = mortgage rate in %
X₂ = 1 if Sydney,0 if Melbourne
Y = demand in $100 per capita
-Referring to Instruction 13-11,the predicted demand in Sydney when the mortgage rate is 10% is ________ per capita.

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Definitions:

Forecasts

Future predictions about various aspects such as sales, weather, economic trends, based on historical data, current conditions, and analytical models, crucial for planning and preparation.

Budgets

Financial plans outlining an organization's projected revenue, expenses, and cash flow over a specific period.

Marketing Mix Plans

Strategies that involve the adjustment and optimization of product, price, place, and promotion to effectively engage with a target market.

BCG Matrix

A strategic planning tool that uses two variables, market growth rate and market share, to evaluate a company's product portfolio.