Exhibit 17

question 66

Multiple Choice

Exhibit 17.3.Consider the regression model, Humidity = β₀ + β₁Temperature + β₂Spring + β₃Summer + β₄Fall + β₅Rain + ε,
Where the dummy variables Spring,Summer,and Fall represent the qualitative variable Season (spring,summer,fall,winter) ,and the dummy variable Rain is defined as Rain = 1 if rainy day,Rain = 0 otherwise.
Refer to Exhibit 17.3.What is the regression equation for the summer days?

• A) = (b₀ + b₃)+ b₁Temperature + b₅Rain
• B) = b₀ + b₁Temperature + b₅Rain
• C) = b₀ + b₁Temperature + b₂Spring + b₅Rain

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Definitions:

Depository Institutions

Depository institutions are financial organizations, such as banks and credit unions, that accept deposits from individuals and provide loans.

Reserves

Funds that banks use to satisfy the cash demands of their customers and the reserve requirements of the Fed; reserves consist of cash held by banks plus deposits at the Fed.

Acquire Funds

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Foreign Exchange Markets

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