t to analyse personal consumption expenditures by using income. However, you also believe that personal consumption expenditures might vary by gender (female-male) and marital status (married-single). By setting appropriate dummy variables, construct a regression where not only the autonomous consumption but also the marginal propensity to consume are allowed to vary by gender and marital status. In your regression, you should have the ass

College Algebra
1st Edition
ISBN:9781938168383
Author:Jay Abramson
Publisher:Jay Abramson
Chapter6: Exponential And Logarithmic Functions
Section6.8: Fitting Exponential Models To Data
Problem 1TI: Table 2 shows a recent graduate’s credit card balance each month after graduation. a. Use...
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Suppose you want to analyse personal consumption expenditures by using income. However, you also believe that personal consumption expenditures might vary by gender (female-male) and marital status (married-single).

By setting appropriate dummy variables, construct a regression where not only the autonomous consumption but also the marginal propensity to consume are allowed to vary by gender and marital status. In your regression, you should have the assumption that the differential effect of gender (marital status) on autonomous consumption and marginal propensity to consume is the same across two categories of marital status (gender). Once you construct your regression, derive the expected personal consumption expenditures of each group.

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