Let (y=) expenditure ( ($) ) on food away from home per household member per month in

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Let \(y=\) expenditure ( \(\$\) ) on food away from home per household member per month in the past quarter and \(x=1\) if the household includes a member with an advanced degree, a Master's, or Ph.D./Professional degree, and \(x=0\) otherwise.

a. Using 2013 data from three-person households \((N=2334)\), we obtain least squares estimates \(\hat{y}=44.96+30.41 x\). Interpret the coefficient of \(x\) and the intercept from this relation.

b. What is the per person sample mean of food expenditures away from home for a household including someone with an advanced degree?

c. What is the per person sample mean of food expenditures away from home for a household that does not include someone with an advanced degree?

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Principles Of Econometrics

ISBN: 9781118452271

5th Edition

Authors: R Carter Hill, William E Griffiths, Guay C Lim

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