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The data come from the 2007 Consumer Expenditure Survey and only includes households with at least one child. Households report all their spending for
The data come from the 2007 Consumer Expenditure Survey and only includes households with at least one child. Households report all their spending for a two- week period. The variable nondurable measures the household's two-week expenditure on nondurable consumption products like food and clothing. The variable income is the household's total annual income. The variable famsize is the number of people in the household. The variable children is the number of people in the household who are age 17 or less. Consider the following regression output: reg nondurable income famsize children Source SS df MS Model Residual 311454144 3 1.3886e+09 1601 103818048 867343.007 Number of obs = F( 3, 1601) Prob > F R-squared = = = Adj R-squared = Total 1.7001e+09 1604 1059894.2 Root MSE = nondurable Coef. Std. Err. t P>|t| [95% Conf. 1 income .0064536 .0003833 famsize 204.3277 45.19313 children -125.9337 53.30787 -2.36 16.84 0.000 4.52 0.000 0.018 .0057018 115.6838 -230.4943 _ cons 544.0309 94.5462 5.75 0.000 358.5836 Which of the following is a correct statement: an additional child is predicted to increase two-week nondurable expenditure by $126 holding income constant. an additional child is predicted to increase two-week nondurable expenditure by $330 holding income constant. an additional child is predicted to increase two-week nondurable expenditure by $78 holding income constant. an additional child is predicted to increase two-week nondurable expenditure by $204 holding income constant.
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