# Question: The following model was fitted to observations from 1972 to

The following model was fitted to observations from 1972 to 1979 in an attempt to explain oil-pricing behavior:

Where

y` = difference between price in the current year and price in the previous year, in dollars per barrel

x1 = difference between spot price in the current year and spot price in the previous year

x2 = dummy variable taking the value 1 in 1974 and 0 otherwise to represent the specific effect of the oil embargo of that year

The numbers in parentheses under the coefficients are the estimated coefficient standard errors. Interpret verbally and graphically the estimated coefficient on the dummy variable.

Where

y` = difference between price in the current year and price in the previous year, in dollars per barrel

x1 = difference between spot price in the current year and spot price in the previous year

x2 = dummy variable taking the value 1 in 1974 and 0 otherwise to represent the specific effect of the oil embargo of that year

The numbers in parentheses under the coefficients are the estimated coefficient standard errors. Interpret verbally and graphically the estimated coefficient on the dummy variable.

**View Solution:**## Answer to relevant Questions

The following model was fitted to explain the selling prices of condominiums in a sample of 815 sales: where y` = selling price of condo, in dollars x1 = square footage of living area x2 = size of garage, in number of ...In a study of the influence of financial institutions on bond interest rates in Germany, quarterly data over a period of 12 years were analyzed. The postulated model was yi = β0 + β1x1i + β2x2i + εi where yi = change ...In order to assess the effect in one state of a casualty insurance company’s economic power on its political power, the following model was hypothesized and fitted to data from all 50 states: Y = β0 + β1X1 + β2X2 + ...It is common practice to compute an analysis of variance table in conjunction with an estimated multiple regression. Carefully explain what can be learned from such a table. At the end of classes professors are rated by their students on a scale of 1 (poor) to 5 (excellent). Students are also asked what course grades they expect, and these are coded as A = 4, B = 3, and so on. The data file ...Post your question