A sociologist is looking at the relationship between consumption expenditures of families in the United States (Consumption in $), family income (Income in $), and whether or not the family lives in an urban or rural community (Urban = 1 if urban, 0 otherwise). She collects data on 50 families across the United States, a portion of which is shown in the accompanying table. Consumption Income Urban 62325 87601 1 60282 94906 1 70327 106201 1 43134 60850 1 26125 51050 0 52441 89158 1 45735 62821 0 59295 71927 0 46096 64602 1 60252 98073 1 36725 69631 0 62753 88805 0 54001 87763 0 48940 67948 1 54710 91340 0 66379 112464 0 65027 86294 0 64837 99954 1 63875 105306 0 76118 95612 1 79742 103433 0 39262 52869 0 33729 63817 1 52235 73926 0 58760 75175 0 71601 94623 1 59173 97350 0 70111 81665 1 63210 84886 0 42603 102741 1 58985 85476 0 29339 49034 0 57990 71736 1 58490 53989 0 19731 40020 0 53743 76238 1 66137 97546 0 64368 134555 0 59776 85503 1 28095 55505 1 52120 78890 1 64380 87000 0 26124 66719 0 71796 114895 0 31879 61936 0 69186 123254 1 24028 54474 0 54125 102599 1 48963 90184 1 59055 100908 1 a. Estimate: Consumption = β0 + β1Income + ɛ to predict consumption for a family with income of $77,000. (Round coefficient estimates to at least 4 decimal places and round final answer to the nearest whole number.) Predicted consumption expenditures= ? b. Include a dummy variable Urban to predict consumption for a family with income of $77,000 in urban and rural communities. (Round coefficient estimates to at least 4 decimal places and round final answer to the nearest whole number.) Predicted consumption Urban community = ? Rural community= ? c. Include Income, a dummy variable Urban and an interaction variable (Income × Urban) to predict consumption for a family with income of $77,000 in urban and rural communities. (Round coefficient estimates to at least 4 decimal places and round final answer to the nearest whole number.) Predicted consumption Urban community = ? Rural community= ?

A sociologist is looking at the relationship between consumption expenditures of families in the United States (Consumption in $), family income (Income in $), and whether or not the family lives in an urban or rural community (Urban = 1 if urban, 0 otherwise). She collects data on 50 families across the United States, a portion of which is shown in the accompanying table. Consumption Income Urban 62325 87601 1 60282 94906 1 70327 106201 1 43134 60850 1 26125 51050 0 52441 89158 1 45735 62821 0 59295 71927 0 46096 64602 1 60252 98073 1 36725 69631 0 62753 88805 0 54001 87763 0 48940 67948 1 54710 91340 0 66379 112464 0 65027 86294 0 64837 99954 1 63875 105306 0 76118 95612 1 79742 103433 0 39262 52869 0 33729 63817 1 52235 73926 0 58760 75175 0 71601 94623 1 59173 97350 0 70111 81665 1 63210 84886 0 42603 102741 1 58985 85476 0 29339 49034 0 57990 71736 1 58490 53989 0 19731 40020 0 53743 76238 1 66137 97546 0 64368 134555 0 59776 85503 1 28095 55505 1 52120 78890 1 64380 87000 0 26124 66719 0 71796 114895 0 31879 61936 0 69186 123254 1 24028 54474 0 54125 102599 1 48963 90184 1 59055 100908 1 a. Estimate: Consumption = β0 + β1Income + ɛ to predict consumption for a family with income of $77,000. (Round coefficient estimates to at least 4 decimal places and round final answer to the nearest whole number.) Predicted consumption expenditures= ? b. Include a dummy variable Urban to predict consumption for a family with income of $77,000 in urban and rural communities. (Round coefficient estimates to at least 4 decimal places and round final answer to the nearest whole number.) Predicted consumption Urban community = ? Rural community= ? c. Include Income, a dummy variable Urban and an interaction variable (Income × Urban) to predict consumption for a family with income of $77,000 in urban and rural communities. (Round coefficient estimates to at least 4 decimal places and round final answer to the nearest whole number.) Predicted consumption Urban community = ? Rural community= ?

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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Consumption	Income	Urban
62325	87601	1
60282	94906	1
70327	106201	1
43134	60850	1
26125	51050	0
52441	89158	1
45735	62821	0
59295	71927	0
46096	64602	1
60252	98073	1
36725	69631	0
62753	88805	0
54001	87763	0
48940	67948	1
54710	91340	0
66379	112464	0
65027	86294	0
64837	99954	1
63875	105306	0
76118	95612	1
79742	103433	0
39262	52869	0
33729	63817	1
52235	73926	0
58760	75175	0
71601	94623	1
59173	97350	0
70111	81665	1
63210	84886	0
42603	102741	1
58985	85476	0
29339	49034	0
57990	71736	1
58490	53989	0
19731	40020	0
53743	76238	1
66137	97546	0
64368	134555	0
59776	85503	1
28095	55505	1
52120	78890	1
64380	87000	0
26124	66719	0
71796	114895	0
31879	61936	0
69186	123254	1
24028	54474	0
54125	102599	1
48963	90184	1
59055	100908	1

a. Estimate: Consumption = β₀ + β₁Income + ɛ to predict consumption for a family with income of $77,000. (Round coefficient estimates to at least 4 decimal places and round final answer to the nearest whole number.)

Predicted consumption expenditures= ?

b. Include a dummy variable Urban to predict consumption for a family with income of $77,000 in urban and rural communities. (Round coefficient estimates to at least 4 decimal places and round final answer to the nearest whole number.)

Predicted consumption

Urban community = ?

Rural community= ?

c. Include Income, a dummy variable Urban and an interaction variable (Income × Urban) to predict consumption for a family with income of $77,000 in urban and rural communities. (Round coefficient estimates to at least 4 decimal places and round final answer to the nearest whole number.)

Predicted consumption

Urban community = ?

Rural community= ?

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