To Explain Personal Consumption (CONS)measured in Dollars,data Is Collected for

question 95

Multiple Choice

To explain personal consumption (CONS) measured in dollars,data is collected for
A regression analysis was performed with CONS as the dependent variable and CRDTLIM,APR,ADVT,and SEX as the independent variables.The estimated model was
? = 2.28 - 0.29 CRDTLIM - 5.77 APR + 2.35 ADVT + 0.39 SEX
What is the correct interpretation for the estimated coefficient for SEX?

• A)Holding the effect of the other independent variables constant,mean personal consumption for females is estimated to be $0.39 higher than males.
• B)Holding the effect of the other independent variables constant,mean personal consumption for males is estimated to be $0.39 higher than females.
• C)Holding the effect of the other independent variables constant,mean personal consumption for females is estimated to be 0.39% higher than males.
• D)Holding the effect of the other independent variables constant,mean personal consumption for males is estimated to be 0.39% higher than females.

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Definitions:

Percentage-Of-Completion Method

An accounting method used to recognize revenue and expenses of long-term projects proportionally to the degree of completion.

Revenue Recognition

Guidelines that dictate when a company can report income, crucial for timely and fair financial reporting.

Completed Contract Method

An accounting technique used to recognize revenue and expenses of long-term contracts only after the project is completed.

Revenue Recognition

This is an accounting principle that outlines the specific conditions under which revenue is recognized and can be reported in financial statements.