To Explain Personal Consumption (CONS)measured in Dollars,data Is Collected For \begin{array}

question 219

Multiple Choice

To explain personal consumption (CONS) measured in dollars,data is collected for $$\begin{array} { | l | l | } \hline \text { INC: } & \text { personal income in dollars } \\\hline \text { CRDTLIM: } & \$ 1 \text { plus the credit limit in dollars available to the individual } \\\hline \text { APR: } & \text { average annualised percentage interest rate for borrowing for the individual } \\\hline & \text { per person advertising expenditure in dollars by manufacturersin the city } \\\text { ADVT: } & \text { where the individuallives } \\\hline \text { GENDER: } & \text { gender of the individual; } 1 \text { if female, 0 if male } \\\hline\end{array}$$ A regression analysis was performed with CONS as the dependent variable and log(CRDTLIM) ,ln(APR) ,log(ADVT) and GENDER as the independent variables.The estimated model was $\hat{y}$ = 2.28 * 0.29 log(CRDTLIM) + 5.77 llogAPR) + 2.35 log(ADVT) + 0.39 GENDER
AU: Please advise if 'llogAPR' is 'logAPR'.
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 males is estimated to be $0.39 higher than females.
• B) Holding the effect of the other independent variables constant, mean personal consumption for females is estimated to be 0.39% higher than males.
• C) Holding the effect of the other independent variables constant, mean personal consumption for males is estimated to be 0.39% higher than females.
• D) Holding the effect of the other independent variables constant, mean personal consumption for females is estimated to be $0.39 higher than males.

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Definitions:

Heteroscedasticity

A condition in regression analysis where the variance of errors or the variability of a dependent variable is unequal across all levels of an independent variable.

Residuals

The differences between observed values and the values predicted by a model, indicating the error in predictions.

Predicted Values

The expected values calculated from a regression or other predictive models based on specific input variables.

API Gravity

A measure used to quantify the density of petroleum liquids relative to water, as defined by the American Petroleum Institute.