Consider the following regression: C = ao + a*(AGE67) + a*D + a3*(AGE-67)*D + e where...

 

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Consider the following regression: C = ao + a*(AGE67) + a*D + a3*(AGE-67)*D + e where C is the level of household consumption, AGE is age of the household head (hh) and 67 is the minimum age for retirement for Italian workers. The dummy variable D is equal to 1 if hh is female, 0 if hh is male. The sample size is as large as 10.000. 3) Let the t-stat for a be as large as -2.8. Would you say the average C is different across genders at age=67? Does it differ across genders at age 40? Consider the following regression: C = ao + a*(AGE67) + a*D + a3*(AGE-67)*D + e where C is the level of household consumption, AGE is age of the household head (hh) and 67 is the minimum age for retirement for Italian workers. The dummy variable D is equal to 1 if hh is female, 0 if hh is male. The sample size is as large as 10.000. 3) Let the t-stat for a be as large as -2.8. Would you say the average C is different across genders at age=67? Does it differ across genders at age 40?

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To determine if the average household consumption C is different across genders at age 67 and age 40 ... View the full answer