Consider the Following Regression Results: Income = 30 + 0 $\beta$

question 9

Multiple Choice

Consider the following regression results: Income = 30 + 0.2Parental income + 5 Male + 0.001 Male x Parental income and the t-statistics are 3, 3, 3 and 0.2 for the four estimated coefficients (starting with $\beta$ ₀-hat) . Which of the following conclusions is correct?

• A) Men are not estimated to have greater income than women.
• B) The fitted value for a man whose parents had 0 income is 30.
• C) We have no evidence that the effect of parental income differs for men and women.
• D) The effect of parental income on women is larger than for men.

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Definitions:

Sales Returns

Transactions where customers return previously purchased merchandise, leading to a refund or credit.

Sales Returns

Transactions where customers return previously purchased merchandise, leading to a deduction from the gross sales to arrive at the net sales figure.

Debit Balance

A situation where the total debits exceed the total credits in an account.

Merchandise

Goods that a business purchases to sell to customers in the ordinary course of its business; typically, items bought for resale.