To explain personal consumption (CONS)measured in dollars, data is collected for INC: personal income in dollars CRDTLIM: $1 plus the credit limit in dollars available to the individual APR: mean annualized percentage interest rate for borrowing for the individual ADVT: per person advertising expenditure in dollars by manufacturers in the city where the individual lives SEX: gender of the individual; 1 if female, 0 if male A regression analysis was performed with CONS as the dependent variable and CRDTLIM, APR, ADVT, and SEX as the independent variables.The estimated model was -2.28 0.29 CRDTLIM +5.77 APR +2.35 ADVT +0.39 SEX What is the correct interpretation for the estimated coefficient for SEX?
A)Holding the effect of the other independent variables constant, mean personal consumption for females is estimated to be $0.39 higher than males.
B)Holding the effect of the other independent variables constant, mean personal consumption for males is estimated to be $0.39 higher than females.
C)Holding the effect of the other independent variables constant, mean personal consumption for females is estimated to be 0.39% higher than males.
D)Holding the effect of the other independent variables constant, mean personal consumption for males is estimated to be 0.39% higher than females.

Question

To explain personal consumption (CONS)measured in dollars, data is collected for INC: personal income in dollars CRDTLIM: $1 plus the credit limit in dollars available to the individual APR: mean annualized percentage interest rate for borrowing for the individual ADVT: per person advertising expenditure in dollars by manufacturers in the city where the individual lives SEX: gender of the individual; 1 if female, 0 if male A regression analysis was performed with CONS as the dependent variable and CRDTLIM, APR, ADVT, and SEX as the independent variables.The estimated model was  -2.28 0.29 CRDTLIM +5.77 APR +2.35 ADVT +0.39 SEX What is the correct interpretation for the estimated coefficient for SEX?
A)Holding the effect of the other independent variables constant, mean personal consumption for females is estimated to be $0.39 higher than males. 
B)Holding the effect of the other independent variables constant, mean personal consumption for males is estimated to be $0.39 higher than females. 
C)Holding the effect of the other independent variables constant, mean personal consumption for females is estimated to be 0.39% higher than males. 
D)Holding the effect of the other independent variables constant, mean personal consumption for males is estimated to be 0.39% higher than females.

Quizplus · Accepted Answer

The estimated coefficient for SEX is 0.39, which means that holding the effect of the other independent variables constant, the mean personal consumption for females is estimated to be $0.39 higher than males. The estimated coefficient for SEX is 0.39, indicating that holding constant the other independent variables, females have a mean personal consumption that is estimated to be $0.39 higher than males.

To Explain Personal Consumption (CONS)measured in Dollars, Data Is Collected