Instruction 16-1
to Explain Personal Consumption (CONS)measured in Dollars,data Is

question 12

Multiple Choice

Instruction 16-1
To explain personal consumption (CONS) measured in dollars,data is collected for
$$\begin{array}{l}\begin{array} {|l|l|} \hline \text {INC }&\text { personal income in dollars}\\\hline&\text {\( \$ 1 \) plus the credit limit in dollars available to the }\\\text { CRDTLIM}&\text { individual}\\\hline&\text {average annualised percentage interest rate for }\\\text {APR: }&\text {borrowing for the individual }\\\hline&\text {per person advertising expenditure in dollars by }\\&\text { manufacturers in the city where the }\\\text {ADVT: }&\text {individual lives }\\\hline\text {GENDER:}&\text {gender of the individual; 1 if female, 0 if male}\\\hline \end{array}\end{array}$$ A regression analysis was performed with CONS as the dependent variable and log(CRDTLIM) ,log(APR) ,log(ADVT) ,and GENDER as the independent variables.The estimated model was
= 2.28 - 0.29 log(CRDTLIM) + 5.77 log(APR) + 2.35 log(ADVT) + 0.39 GENDER
-Referring to Instruction 16-1,and noting that ADVT has been transformed using the log transformation,what is the correct interpretation for the estimated coefficient for ADVT?

• A)A 1% increase in per person advertising expenditure by the manufacturer will result in an estimated mean increase of 2.35% on personal consumption holding other variables constant.
• B)A 100% increase in per person advertising expenditure by the manufacturer will result in an estimated mean increase of $2.35 on personal consumption holding other variables constant.
• C)A $1 increase in per person advertising expenditure by the manufacturer will result in an estimated mean increase of $2.35 on personal consumption holding other variables constant.
• D)A 100% increase in per person advertising expenditure by the manufacturer will result in an estimated mean increase of 2.35% on personal consumption holding other variables constant.

---

Definitions:

Irritable

describes a state of being easily annoyed or angered, showing a tendency towards frustration or agitation.

Respiratory Illness

Any of various diseases and disorders that affect the respiratory system, which includes the lungs and airways, leading to difficulties in breathing.

Methadone

A synthetic opioid used for pain management and as part of medication-assisted treatment for opioid use disorder.

Withdrawal Symptoms

Physical and psychological effects that occur when a person abruptly stops or reduces the intake of a substance they are addicted to.