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 two households, one suburban and one rural, Abby's model predicts ___.

A) equal monthly expenditures for groceries
B) the suburban household's monthly expenditures for groceries will be $49 more
C) the rural household's monthly expenditures for groceries will be $49 more
D) the suburban household's monthly expenditures for groceries will be $8 more
E) the rural household's monthly expenditures for groceries will be $49 less