Abby Ross, a Market Specialist at the Market Research Firm

Multiple Choice

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 rural 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) $132.28