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Using the data from the National longitudinal study of household, the regression estimation result of the consumption model are as follows: C= 138+0.85Y+1.5F Where: Y F Consumption per year Income per year 1: Female, O: otherwise i. ii. iii. iv. Explain why variable F is included in the above model. (2 marks) Interpret the variable income per year (2 marks) Derive and state the regression equation for consumption for male and female (3 marks) Based on your answer in part (iii), draw the regression equations in one diagram if the income per year is about RM 45,000 (5 marks) Obtain the expected value of consumption per year for male and female if the income per year is about RM 50,000 (4 marks) Suppose, the variable gender was changed into variable race (Chinese, malay and indian), how many dummy variables should be introduced and explain why. (3 marks) i. ii. Using the data from the National longitudinal study of household, the regression estimation result of the consumption model are as follows: C= 138+0.85Y+1.5F Where: Y F Consumption per year Income per year 1: Female, O: otherwise i. ii. iii. iv. Explain why variable F is included in the above model. (2 marks) Interpret the variable income per year (2 marks) Derive and state the regression equation for consumption for male and female (3 marks) Based on your answer in part (iii), draw the regression equations in one diagram if the income per year is about RM 45,000 (5 marks) Obtain the expected value of consumption per year for male and female if the income per year is about RM 50,000 (4 marks) Suppose, the variable gender was changed into variable race (Chinese, malay and indian), how many dummy variables should be introduced and explain why