Abby Ross, a market specialist at the market research firm of Saez, Gann, and Spitz, is analyzing household budget data collected by her firm.Abby's dependent variable is monthly household expenditures on groceries (in $'s), and her independent variables are annual household income (in $1,000's)and household neighbourhood (0 = suburban, 1 = rural).Regression analysis of the data yielded the following table: For a suburban household with $70,000 annual income, Abby's model predicts monthly grocery expenditure of ___.
A)$141.15
B)$190.28
C)$164.52
D)$122.67
E)$241.15

Question

Abby Ross, a market specialist at the market research firm of Saez, Gann, and Spitz, is analyzing household budget data collected by her firm.Abby's dependent variable is monthly household expenditures on groceries (in $'s), and her independent variables are annual household income (in $1,000's)and household neighbourhood (0 = suburban, 1 = rural).Regression analysis of the data yielded the following table:  For a suburban household with $70,000 annual income, Abby's model predicts monthly grocery expenditure of ___.
A)$141.15 
B)$190.28 
C)$164.52 
D)$122.67 
E)$241.15

Quizplus · Accepted Answer

The Answer of Abby Ross, a market specialist at the market research firm of Saez, Gann, and Spitz, is analyzing household budget data collected by her firm.Abby's dependent variable is monthly household expenditures on groceries (in $'s), and her independent variables are annual household income (in $1,000's)and household neighbourhood (0 = suburban, 1 = rural).Regression analysis of the data yielded the following table:  For a suburban household with $70,000 annual income, Abby's model predicts monthly grocery expenditure of ___.
A)$141.15 
B)$190.28 
C)$164.52 
D)$122.67 
E)$241.15

Abby Ross, a Market Specialist at the Market Research Firm