Examlex
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 Melbourne when the mortgage rate is 8% is ________ per capita.
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