Abby Kratz,a Market Specialist at the Market Research Firm of Saez,Sikes,and

question 45

Multiple Choice

Abby Kratz,a market specialist at the market research firm of Saez,Sikes,and Spitz,is analyzing household budget data collected by her firm.Abby's dependent variable is weekly household expenditures on groceries (in $'s) ,and her independent variables are annual household income (in $1,000's) and household neighborhood (0 = suburban,1 = rural) .Regression analysis of the data yielded the following table. However,Abby has reasons to believe that actually suburban households have a higher propensity to spend in groceries than rural households,as they tend to make more impulse purchasing decisions.In this new model,the actual income coefficient for the suburban families is 1.735272α,for some α > 1.If new data confirms that suburban houses with an annual income of $95,773.44 have the same weekly grocery spending than rural households,then α = ______.

• A) 1.055587
• B) 1.165587
• C) 1.245587
• D) 1.275587
• E) 1.295587

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Definitions:

Innovation

The introduction of something new, such as an idea, method, or device, that creates value or solves a problem.

Extrinsic Motivation

Motivation that is driven by external rewards such as money, fame, grades, or praise rather than by intrinsic rewards related to the activity itself.

Intrinsic Motivation

The performance of tasks for our own innate satisfaction.

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An individual's drive to overcome obstacles, achieve high standards, and attain goals through persistent effort and determination.