To explain personal consumption (CONS) measured in dollars, data is collected for INC: personal income in...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
To explain personal consumption (CONS) measured in dollars, data is collected for INC: personal income in dollars CRDTLIM: $1 plus the credit limit in dollars available to the individual APR: mean annualized percentage interest rate for borrowing for the individual ADVT: per person advertising expenditure in dollars by manufacturers in the city where the individual lives SEX: gender of the individual; 1 if female, 0 if male A regression analysis was performed with CONS as the dependent variable and CRDTLIM, APR, ADVT, and GENDER as the independent variables. The estimated model was CONS = 2.28-0.29* CRDTLIM +5.77*APR +2.35*ADVT+0.39*SEX What is the correct interpretation for the estimated coefficient for GENDER? A) Holding the effect of the other independent variables constant, mean personal consumption for females is estimated to be $0.39 higher than males. B) Holding the effect of the other independent variables constant, mean personal consumption for males is estimated to be $0.39 higher than females. C) Holding the effect of the other independent variables constant, mean personal consumption for females is estimated to be 0.39% higher than males. D) Holding the effect of the other independent variables constant, mean personal consumption for males is estimated to be 0.39% higher than females. To explain personal consumption (CONS) measured in dollars, data is collected for INC: personal income in dollars CRDTLIM: $1 plus the credit limit in dollars available to the individual APR: mean annualized percentage interest rate for borrowing for the individual ADVT: per person advertising expenditure in dollars by manufacturers in the city where the individual lives SEX: gender of the individual; 1 if female, 0 if male A regression analysis was performed with CONS as the dependent variable and CRDTLIM, APR, ADVT, and GENDER as the independent variables. The estimated model was CONS = 2.28-0.29* CRDTLIM +5.77*APR +2.35*ADVT+0.39*SEX What is the correct interpretation for the estimated coefficient for GENDER? A) Holding the effect of the other independent variables constant, mean personal consumption for females is estimated to be $0.39 higher than males. B) Holding the effect of the other independent variables constant, mean personal consumption for males is estimated to be $0.39 higher than females. C) Holding the effect of the other independent variables constant, mean personal consumption for females is estimated to be 0.39% higher than males. D) Holding the effect of the other independent variables constant, mean personal consumption for males is estimated to be 0.39% higher than females.
Expert Answer:
Answer rating: 100% (QA)
As we can see from the equation CONS 228 029CRDTLIM 577APR 235ADVT039SEX Consumption in ... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
Students also viewed these general management questions
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...
-
1. What is a 90% confidence interval for the correlation between Satisfaction and Effectiveness? 2 . Conduct a simple regression analysis with Satisfaction as your dependent variable and Pain as your...
-
A regression analysis was performed to determine the relationship between the costs of a product (y), the time to make the product (x 1), the number of different materials used (x 2), and the amount...
-
Classify each of the following items as a public good, a private good, a mixed good, or a common resource. Georges Banks cod stock A courtside seat at the U.S. Open (tennis) A well-stocked buffet...
-
You are an IT advisor to a JAD team that is studying a new inventory system. The proposed system will provide more information and faster updates, and automatically monitor fast- or slow-moving...
-
Two persons use a large winch to raise a mass of 470 kg. The radius of the wheel is 48 cm and the radius of the axle is 4.0 cm. (a) What force is required to lift the load? (b) Find the MA of the...
-
Debentures of 30,000 are issued on 1 January 2003. Redemption is to take place, on equal terms, four years later. The company decides to put aside an equal amount to be invested at 5 per cent which...
-
Using the following data from the comparative balance sheet of Goody Company, illustrate horizontalanalysis. Accounts receivable Inventory Total assets December 31, 2015 520,000 840,000 3,000,000...
-
Selected transactions for M. Coronado, an interior decorator, in her first month of business, are as follows. Jan. 2 Invested $14,200 cash in business. 3 Purchased used car for $4,260 cash for use...
-
Use mesh analysis to find ix in Fig. 13.80, Where is = 4 cos(600t) A and vs = 110 cos(600t + 30º) 12 F 150 800 mH 600 mH
-
help me to debug this #if binary numer is 1 then print "X"; Otherwise, print " "(space) instead convertBinaryToArt(){ binnum=$1 zero=$2 one=$3 numdigits=`expr ${binnum}` digitpos=0 convnum="" while [...
-
6. Air enters a well-insulated, internally-reversible nozzle at 115 kPa, 330K with negligible speed and exits at 100 kPa. Determine the exit speed in m/s.
-
Respond to post below. During the Superbowl, brands take advantage of the most-watched annual sporting event in the U.S. by launching iconic commercials. One commercial that stuck with me was from a...
-
Running the command- line command: Javac helloWord.java Result in the following error message: Helloworld.java: error;illegal start of type System.out.println("hello world"); What is the type of...
-
Show that requires three support points to obtain the best upper bound with mean of 0.5 and variance of 1/6 on = [0,1] . Find the Edmundson-Madansky and two-moment bounds for uniform on = [0,1]...
-
Find a (real) general solution to the equation y" + 10y' 169y= 720e* cos(6x). NOTE: Write arbitrary constants as c and c2.
-
I am looking for help with Support for Inclusion regarding the prompts below What is inclusion, and how does the legislative mandate of IDEIA (Individual with Disabilities Education Improvement Act,...
-
Information graphics, also called infographics, are wildly popular, especially in online environments. Why do you think infographics continue to receive so much attention? How could infographics be...
-
In the 2012 tax year, Michelle paid the following amounts relating to her 2010 tax return: Tax deficiency..........................................$5,000 Negligence...
-
Laura is a single taxpayer living in New Jersey with adjusted gross income for the 2012 tax year of $35,550. Laura's employer withheld $3,300 in state income tax from her salary. In April of 2012,...
-
Scott Butterfield is self-employed as a CPA. He uses the cash method of accounting, and his Social Security number is 644-47-7833. His principal business code is 541211. Scott's CPA practice is...
-
On April 10, 2016, when the spot rate is \($1.30/,\) a U.S. company sells merchandise to a customer in Italy. The spot rate is \($1.31/\) on June 30, the companys year-end. Payment of 100,000 is...
-
Use the information from question 3. What is the net exchange gain or loss for 2017? Use the following forward and spot prices for Canadian dollars (C\($)\) to answer this question. The prices are in...
-
On November 15, 2016, a U.S. company issues a purchase order to a Canadian supplier for merchandise costing C\($1,000,000\). On the same date, the company enters a forward contract locking in the...
Study smarter with the SolutionInn App