Below is the regression output for E(Charged) = beta _0 + beta _1Income + beta _

Question

Below is the regression output for E(Charged) = beta _0 + beta _1Income + beta _2Size + beta _3East (Model 1). What is the estimated regression equation? Following Q10, what is the most appropriate explanation to interpret the coefficient for Income? For every $1000 increase in annual income, the annual credit card charges will increase by $33 For every $1000 increase in annual income, the annual credit card charges will increase by $33, holding household size and area constant For every $33000 increase in annual income, the annual credit card charges will increase by $1000 For every $33000 increase in annual income, the annual credit card charges will increase by $1000, holding household size and area constant

Explanation / Answer

Solution:- Y = 1343.86 + 33.1423*Income + 352.529*Size - 73.565*East

B0 = 1343.86

B1 = 33.1423

B2 = 352.529

B3 = - 73.565

Y = 1343.86 + 33.1423*Income + 352.529*Size - 73.565*East

For every $1000 increae in annual income, the annual credit card charges will increase by $33, holding household size and area constant.

Related Questions

Navigate

• Browse (All)
• Browse B
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.