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

question 200

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,holding constant the effect of city,each additional increase of 1% in the mortgage rate would lead to an estimated increase of ________ per capita in the mean demand.

---

Definitions:

Fragile X Syndrome

A genetic condition causing intellectual disability, behavioral and learning challenges, and various physical characteristics.

Trisomy 21

Also known as Down syndrome, a genetic disorder caused by the presence of an extra 21st chromosome.

Phenylketonuria

A genetic disorder characterized by the inability of the body to break down the amino acid phenylalanine, leading to potentially serious neurological complications if untreated.

Down Syndrome

A genetic disorder caused by the presence of all or part of a third copy of chromosome 21.