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Instruction 13 -Referring to Instruction 13

Question 66

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Instruction 13.33
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 \begin{array}{l}Y = 10 + 5 X _ { 1 } + 8 X _ { 2 }\\\\\text { where } \begin{aligned}X _ { 1 } & = \text { mortgage rate in } \% \\X _ { 2 } & = 1 \text { if Sydney, } 0 \text { if Melbourne } \\Y & = \text { demand in } \$ 100 \text { per capita }\end{aligned}\end{array}
-Referring to Instruction 13.33,the predicted demand in Melbourne when the mortgage rate is 8% is ___________ per capita.

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