TABLE 14-14 An Econometrician Is Interested in Evaluating the Relation of Demand

Multiple Choice

TABLE 14-14
An econometrician is interested in evaluating the relation of demand for building materials to mortgage rates in Los Angeles and San Francisco. He believes that the appropriate model is
Y = 10 + 5X₁ + 8X₂
where X₁ = mortgage rate in %
X₂ = 1 if SF, 0 if LA
Y = demand in $100 per capita
-Referring to Table 14-14, the fitted model for predicting demand in San Francisco is .

A) 10 + 13X1
B) 18 + 5X1
C) 10 + 5X1
D) 15 + 8X2