How Do You Interpret the Estimated Value Of $\gamma$ ₁ in the Following Equation: Ln(ENT_EXP)=

question 14

Multiple Choice

How do you interpret the estimated value of $\gamma$ ₁ in the following equation: ln(ENT_EXP) = $\gamma$ ₁ + $\gamma$ ₂ (INCOME) + e
Where INCOME is annual household income (in thousands) and ENT_EXP is annual entertainment expenses?

• A)the income elasticity of entertainment
• B)when multiplied by 100 it is the percentage increase in entertainment expenses associated with an additional $1000 in income
• C)the increase in entertain expenses associated with a 1% increase in income
• D)the average of the logarithm of entertainment expenses for a household with zero income

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Definitions:

Civil Suit

A legal action taken by one individual against another in a court of law, typically over disputes or claims that do not involve criminal charges.

Remedy

Legal means or methods available to a party to enforce a right or compensate for the violation of a right under the law.

Battery

A criminal offense involving the unlawful physical acting upon a threat, distinct from assault which is the act of creating apprehension of such contact.

Plaintiff

The party who initiates a lawsuit by filing a complaint against the defendant, seeking legal remedy for a grievance.