Question
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.
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