THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION

question 194

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 Y = β₀ + β₁X₁ + β₂X₂ + β₃X₃ +ε was used,where Y is the annual income (in thousands of dollars) ,X₁ is the person's age,X₂ is his/her years of education,and X₃ is a dummy variable = 1 if the adult is female.
-If you get = 26.3 + 1.38x₁ + 2.98x₂ - 0.76x₃ + 0.34(x₂ ∙ x₃) when you run the regression,how would you interpret the coefficient on his/her years of education?

• A)For each additional year of education,women on average earn $420 less than men.
• B)For each additional year of education,women approximately earn $1,100 less than men.
• C)For each additional year of education,women on average earn an additional $3,320.
• D)For each additional year of education,women approximately earn $340 less than men.

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Definitions:

Occult Blood Testing

A laboratory test used to detect blood in the stool that is not visible to the naked eye, often used to screen for colorectal cancer.

Small Intestine

A part of the gastrointestinal tract between the stomach and large intestine, where most digestion and absorption of nutrients occurs.

Digestion

The biological process of breaking down food into absorbable components using enzymatic actions in the gastrointestinal tract.

Large Intestine

The last section of the digestive system, where water is absorbed and stools are formed.