Question: Please help me to answer parts a and b 2. Your friend has been given information on the charitable donations of 47 individuals on an

Please help me to answer parts a and b

Please help me to answer parts a and b 2. Your friendhas been given information on the charitable donations of 47 individuals on

2. Your friend has been given information on the charitable donations of 47 individuals on an annual basis over a 10 year period. She estimates the following model: Charityit = Bo + B, Ageit + B2Income it + B3Priceit + BA Marriedit + B; Depsit + Uit where Charityit is the value of charitable giving in year t = 1,..., 10 by individual i = 1, ..., 47, Ageit is a dummy variable which is 1 if the individual is aged over sixty- four in the year, Income it is the individual's income, Priceit is 1 minus the individual's marginal tax rate, Marriedit (denoted ms in the output below) is a dummy variable indicating if the person was married in year t and Deps it is the number of dependents the individual lists in year t. Your friend obtained the following output Call: lm (formula = charity income + price + age + ms + deps, data = charity) Residuals: Min 1Q Median -4.7373 -0.6069 0.0565 3Q Max 0.7279 3.5053 Coefficients: Estimate Std. Error t value Pr>t) (Intercept) -4.674220 1.298134 -3.601 0.000352 *** income 1.035779 0.128944 8.033 7.94e-15 *** price 0.483092 0.207703 2.326 0.020455 * age 1.547275 0.216955 7.132 3.83e-12 *** ms -0.008036 0.184849 -0.043 0.965341 deps 0.175368 0.042642 4.113 4.63e-05 *** Signif. codes: 0 '***' 0.001 '**' 0.01 '*' 0.05.' 0.1'' 1 Residual standard error: 1.163 on 464 degrees of freedom Multiple R-squared: 0.2245, Adjusted R-squared: 0.2161 F-statistic: 26.86 on 5 and 464 DF, p-value: t) (Intercept) -4.674220 1.298134 -3.601 0.000352 *** income 1.035779 0.128944 8.033 7.94e-15 *** price 0.483092 0.207703 2.326 0.020455 * age 1.547275 0.216955 7.132 3.83e-12 *** ms -0.008036 0.184849 -0.043 0.965341 deps 0.175368 0.042642 4.113 4.63e-05 *** Signif. codes: 0 '***' 0.001 '**' 0.01 '*' 0.05.' 0.1'' 1 Residual standard error: 1.163 on 464 degrees of freedom Multiple R-squared: 0.2245, Adjusted R-squared: 0.2161 F-statistic: 26.86 on 5 and 464 DF, p-value:

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