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A sociologist is looking at the relationship between consumption expenditures of families in the United States (Consumption in $), family income (Income in $),
A sociologist is looking at the relationship between consumption expenditures of families in the United States (Consumption in $), family income (Income in $), and whether or not the family lives in an urban or rural community (Urban 1 if urban, O otherwise). Sh collects data on 50 families across the United States, a portion of which is shown in the accompanying table. Click here for the Excel Data File a. Estimate: Consumption Bo +B1Income E. Compute the predicted consumption expenditures of a family with income of $80,000. Note: Round coefficient estimates to at least 4 decimal places and round final answer to the nearest whole number. Predicted consumption expenditures b. Include a dummy variable, labeled Urban, with values 1 for urban and 0 otherwise, to predict consumption for a family with income of $80,000 in urban and rural communities. Note: Round coefficient estimates to at least 4 decimal places and round final answer to the nearest whole number. Urban community Rural community Predicted Consumption
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