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 weekly household expenditures on groceries (in $'s) ,and her independent variables are annual household income (in $1,000's) and household neighborhood (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 weekly expenditures for groceries
B) the suburban household's weekly expenditures for groceries will be $49 more
C) the rural household's weekly expenditures for groceries will be $49 more
D) the suburban household's weekly expenditures for groceries will be $8 more
E) the rural household's weekly expenditures for groceries will be $49 less