Is it possible to estimate the following specification? Justify your answer. C=a,+ a,Y+ a‚F+ a;M+e where F=1 if person is female and 0 otherwise M=1 if person is male and 0 otherwise fer to Model 2 to answer the following questions: How do you interpret the coefficient of the interaction term? If the level of income is RM 2000, calculate the amount of the expected level of consumption for male and female?

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urently need Part F G and H

The following table gives the regression results of consumption behaviour between
female and male.
Consumption (C), in RM
Model 1
Model 2
Constant
0.7515
0.6587
(0.024)
(0.037)
Y
0.8603
0.5442
(0.0301)
(0.2881)
Gen
0.2001
(0.0004)
Y*Gen
0.3105
(0.0076)
Adjusted R
0.78
0.78
No. of Observations
47
47
Note: Y=income (RM)
Gen= Gender ( It is equal to 1 if person is female; 0 is for male)
Figures in the parentheses are p- values
a) Identify which are the qualitative, quantitative and interaction variable.
Refer to Model 1:
b)
Write the regression equations for female and male.
Draw the regression lines for female and male on the same diagram. What can you
c)
say?
d)
Interpret all the estimated slope coefficients.
e)
Conduct an appropriate test to determine whether variable gender is statistically
significant at 5%. Should this variable be dropped from this regression model.
Transcribed Image Text:The following table gives the regression results of consumption behaviour between female and male. Consumption (C), in RM Model 1 Model 2 Constant 0.7515 0.6587 (0.024) (0.037) Y 0.8603 0.5442 (0.0301) (0.2881) Gen 0.2001 (0.0004) Y*Gen 0.3105 (0.0076) Adjusted R 0.78 0.78 No. of Observations 47 47 Note: Y=income (RM) Gen= Gender ( It is equal to 1 if person is female; 0 is for male) Figures in the parentheses are p- values a) Identify which are the qualitative, quantitative and interaction variable. Refer to Model 1: b) Write the regression equations for female and male. Draw the regression lines for female and male on the same diagram. What can you c) say? d) Interpret all the estimated slope coefficients. e) Conduct an appropriate test to determine whether variable gender is statistically significant at 5%. Should this variable be dropped from this regression model.
Is it possible to estimate the following specification? Justify your answer.
C=a,+ a,Y+ a‚F+ a;M+e
f)
where
F=1 if person is female and 0 otherwise
M=1 if person is male and 0 otherwise
Refer to Model 2 to answer the following questions:
9)
How do you interpret the coefficient of the interaction term?
h)
If the level of income is RM 2000, calculate the amount of the expected level of
consumption for male and female?
Transcribed Image Text:Is it possible to estimate the following specification? Justify your answer. C=a,+ a,Y+ a‚F+ a;M+e f) where F=1 if person is female and 0 otherwise M=1 if person is male and 0 otherwise Refer to Model 2 to answer the following questions: 9) How do you interpret the coefficient of the interaction term? h) If the level of income is RM 2000, calculate the amount of the expected level of consumption for male and female?
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