Abby Kratz,a Market Specialist at the Market Research Firm of Saez,Sikes,and

Multiple Choice

Abby Kratz,a market specialist at the market research firm of Saez,Sikes,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