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C A sociologist is looking at the relationship between consumption expenditures of familles in the United States (Consumption in $), family income (Income in $),

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C A sociologist is looking at the relationship between consumption expenditures of familles 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 urbano otherwise). She collects data on 50 families across the United States, a portion of which is shown in the accompanying table. Consumption Income Urban 62,376 87.623 60.286 94,899 1 59,219 101,029 picture Click here for the Excel Data File a. Estimate Consumption=Be + BIncome to predict consumption for a family with income of $76,000. (Round coefficient estimates to at least 4 decimal places and round final answer to the nearest whole number) Predicted common expenditures b. Include a dummy variable Urban to predict consumption for a family with income of $76,000 in urban and rural communities (Round coefficient estimates to at least 4 decimal places and round final answer to the nearest whole number) 1 Predicted Consumption Urban community Rural community b. Include a dummy variable Urban to predict consumption for a family with income of $76,000 in urban ar coefficient estimates to at least 4 decimal places and round final answer to the nearest whole number. Predicted Consumption Urban community Rural community c. Include Income, a dummy variable Urban and an interaction variable (Income * Urban) to predict consume income of $76,000 in urban and rural communities (Round coefficient estimates to at least 4 decimal plac to the nearest whole number.) Predicted Consumption Urban community Rural community d. Which of the preceding models is most suitable for the data? since it has the Urban 5 LON 10 S. 175 HE 1 ON DES BE co 1995 SE 1 11 06 CODE OME 191 WE COM WON 45 is 16 CE CO EV BONES 14 FO HIN 6014 4600 un HOS CE LET

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