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

question 254

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 SEX: gender of the individual; 1 if female, 0 if male 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:

Maximization Problem

A type of optimization problem that seeks the highest possible value of an objective function under given constraints.

Feasible Region

The set of all possible points that satisfy a system of constraints, typically within the context of optimization problems.

Feasible Region

In optimization and linear programming, the set of all possible points that satisfy the problem's constraints, representing valid solutions.

Constraints

Limitations or restrictions that affect the strategies and goals of an operation or project.