THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION

question 72

Multiple Choice

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
In examining the determinants of income,data were collected regarding the characteristics of 45 adults,and the regression lnY = β₀ + β₁ lnX₁ + β₂ lnX₂ + β₃X₃ + ε was used,where Y is the annual income (in thousands of dollars) ,X₁ is the adult's age,X₂ is his/her years of education,and X₃ is a dummy
variable = 1 and is used if the adult is female.You run the regression and obtain the equation
ln
= 6.3 + 0.91 lnx₁ + 1.3 ln x₂ - 0.05x₃.
-How would you interpret the coefficient on age?

• A)As the person's age increases,their income increases at a decreasing rate.
• B)As the person's age increases,their income increases at an increasing rate.
• C)As the person's age increases,their income at first increases,then eventually decreases.
• D)As the person's age increases,their income at first decreases,then eventually increases.

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Definitions:

Hematocrit

The percentage of red blood cells in a volume of blood, used to diagnose and manage various medical conditions.

Hemoglobin

A protein in red blood cells that carries oxygen from the lungs to the body's tissues and returns carbon dioxide from the tissues back to the lungs.

Extravasation

Refers to the leakage of a fluid, often blood or drug solutions, from a vessel into the tissues surrounding it.

Hemochromatosis

A genetic disorder causing the body to absorb too much iron from the diet, leading to excess iron deposits in organs.