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?
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?
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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urently need Part F G and H

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.

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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