To Explain Personal Consumption (CONS) Measured in Dollars, Data Is

question 105

Multiple Choice

To explain personal consumption (CONS) measured in dollars, data is collected for INC: personal income in dollars
CRDTLIM: $1 plus the credit limit in dollars available to the individual
APR: mean annualized percentage interest rate for borrowing for the individual
ADVT: per person advertising expenditure in dollars by manufacturers in the city where the individual lives

A regression analysis was performed with CONS as the dependent variable and ln(CRDTLIM) , ln(APR) , ln(ADVT) , and GENDER as the independent variables. The estimated model was
Y = 2.28 - 0.29 1n(CRDTLIM) + 5.77 1n(APR) + 2.35 In(ADVT) + 0.39 SEX
What is the correct interpretation for the estimated coefficient for GENDER?

• 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:

Perpetual Inventory System

In accounting for inventory, this method promptly captures the transaction of a sale or purchase using advanced computerized point-of-sale systems and enterprise asset management software.

Cost of Goods Sold

The total cost of manufacturing or acquiring the inventory that was sold during a specific period.

Credit Card Fees

Charges imposed by credit card companies for the processing of transactions, often including a percentage of the transaction amount and a flat fee.

Multiple-Step Income Statement

An income statement that separates operating transactions from non-operating transactions and calculates gross margin and operating income.