How Do You Interpret the Estimated Value Of $\gamma$ ₂ in the Following Equation: Ln(ENT_EXP)=

question 4

Multiple Choice

How do you interpret the estimated value of $\gamma$ ₂ 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

---

Definitions:

Wheels

Wheels are circular components that are intended to rotate on an axle bearing; in the context of vehicles, they facilitate movement by minimizing friction.

Factory Overhead

Indirect costs associated with manufacturing, including utilities, depreciation of equipment, and salaries of managers.

Management Process

A systematic approach to managing and optimizing an organization's resources and operations towards achieving its objectives.

Alternative Actions

Different courses of action or strategies that can be taken in a given situation.