Question: A sociologist is looking at the relationship between consumption expenditures of families in the United States (Consumption in $), family income (Income in $), and
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.
B, Include a dummy variable, labeled Urban, with values 1 for urban and 0 otherwise, to predict consumption for a family with income of $76,000 in urban and rural communities.
C, Include a dummy variable Urban and an interaction variable (Income Urban) to predict consumption for a family with income of $76,000 in urban and rural communities.
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