TABLE 15-1
to Explain Personal Consumption (CONS) Measured in Dollars $\text {INC: personal income indollars}$

question 84

Multiple Choice

TABLE 15-1
To explain personal consumption (CONS) measured in dollars, data is collected for
$\text {INC: personal income indollars}$
$\quad$$\quad$$\text {CRDTLIM: \( \$ 1 \) plus the credit limit in dollars}$
$\quad$$\quad$$\text { available to the individual }$
$\quad$$\quad$$\text {APR: average annualized percentage interest rate for}$
$\quad$$\text { borrowing for the individual}$

$\text {ADVT: perperson advertisingexpenditure}$
$\quad$$\quad$$\quad$$\text { in dollars by manufacturers in the}$
$\quad$$\quad$$\quad$ $\text {city where the individual lives}$

$\text { SEX: gender of the individual: 1 if female, 0 if male}$

A regression analysis was performed with CONS as the dependent variable and ln(CRDTLIM) , ln(APR) , ln(ADVT) , and SEX as the independent variables. The estimated model was
y^{^} = 2.28 - 0.29 ln(CRDTLIM) + 5.77 ln(APR) + 2.35 ln(ADVT) + 0.39 SEX

-Referring to Table 15-1, what is the correct interpretation for the estimated coefficient for ADVT?

• A) A $1 increase in per person advertising expenditure by the manufacturer will result in an estimated average increase of $2.35 on personal consumption holding other variables constant.
• B) A 1% increase in per person advertising expenditure by the manufacturer will result in an estimated average increase of 2.35% on personal consumption holding other variables constant.
• C) A 100% increase in per person advertising expenditure by the manufacturer will result in an estimated average increase of 2.35% on personal consumption holding other variables constant.
• D) A 100% increase in per person advertising expenditure by the manufacturer will result in an estimated average increase of $2.35 on personal consumption holding other variables constant.

Recognize the biodiversity and structural complexity of tropical rainforests.

Understand the impacts of deforestation and desertification on global environments.

Learn about conservation efforts and the importance of preserving natural habitats.

Identify and differentiate among various biomes such as northern coniferous forest, steppe, boreal forest, taiga, temperate deciduous forest, and tropical rain forest.

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Definitions:

Renal Failure

A medical condition where the kidneys lose their ability to adequately filter waste products from the blood.

Digestive System

The system of organs responsible for the intake, breakdown, absorption of food and elimination of waste, including the mouth, esophagus, stomach, intestines, and related structures.

Chronic Glomerular Nephritis

A long-term inflammation of the tiny filters in the kidneys (glomeruli) that can lead to kidney failure.

Renal Failure

A medical condition in which the kidneys lose the ability to remove waste and balance fluids in the body.