
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 ln(CRDTLIM) , ln(APR) , ln(ADVT) , and GENDER as the independent variables. The estimated model was
Y = 2.28 - 0.29 1n(CRDTLIM) + 5.77 1n(APR) + 2.35 In(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.
Correct Answer:
Verified
Q142: TABLE 14-10
You worked as an intern at
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As a project for his business
Q146: TABLE 14-11
A weight-loss clinic wants to use
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A weight-loss clinic wants to use
Q150: If a categorical independent variable contains 2
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You worked as an intern at
Q152: TABLE 14-11
A weight-loss clinic wants to use
Q156: TABLE 14-11
A weight-loss clinic wants to use
Q156: If a categorical independent variable contains 4
Q160: TABLE 14-11
A weight-loss clinic wants to use
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