Multiple Choice
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
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
Correct Answer:
Verified
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