Data is collected from a sample of 1,000 US households in an attempt to understand the relationship between income and money spent eating out at restaurants. A regression is estimated based on the data, and the equation is as follows: Spending; 10.12 + 0.25 * Income; + 756.48 * City: 122.96 * Children - where restaurant spending and income are yearly values measure in $, city is a binary variable that takes on a 1 if the household lives in a city, and children is the number of children in the family. What is the predicted restaurant spending for a household with a yearly income of $50,000, not located in a city, and with 3 children? $12,387.16 $12,141.24 $12,131.12 $12,897.72

Data is collected from a sample of 1,000 US households in an attempt to understand the relationship between income and money spent eating out at restaurants. A regression is estimated based on the data, and the equation is as follows: Spending; 10.12 + 0.25 * Income; + 756.48 * City: 122.96 * Children - where restaurant spending and income are yearly values measure in $, city is a binary variable that takes on a 1 if the household lives in a city, and children is the number of children in the family. What is the predicted restaurant spending for a household with a yearly income of $50,000, not located in a city, and with 3 children? $12,387.16 $12,141.24 $12,131.12 $12,897.72

MACROECONOMICS FOR TODAY

10th Edition

ISBN:9781337613057

Author:Tucker

Publisher:Tucker

Chapter1: Introducing The Economic Way Of Thinking

Section1.A: Applying Graphics To Economics

Problem 1SQ

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