Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Suppose you run a regression of cheese consumption (measured in kilograms) on consumer's income (measured in thousands of US Dollars) using a dataset containing information

Suppose you run a regression of cheese consumption (measured in kilograms) on consumer's income (measured in thousands of US Dollars) using a dataset containing information on 100 consumers' purchases. You obtain the following regression results:

Cheese Consumption=-0.85+0.37*Income, N=100

According to these estimates, you learn that:

A) An increase in Income by 1% will increase the cheese consumption by 0.37%.

B) A decrease in Income by 1 thousand dollars will decrease cheese consumption by 0.37 kilograms.

C) A decrease in Income by 1 thousand dollars will increase cheese consumption by 0.37 kilograms.

D) An increase in Income by 0.37 thousand dollars will increase the cheese consumption by 1 kilogram.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Energy, Trade And Finance In Asia A Political And Economic Analysis

Authors: Justin Dargin, Tai Wei Lim

1st Edition

1317322711, 9781317322719

More Books

Students also viewed these Economics questions

Question

1. Empirical or factual information,

Answered: 1 week ago

Question

1. To take in the necessary information,

Answered: 1 week ago