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Homework answers / question archive / You are an analyst for a retail company

You are an analyst for a retail company. Your boss asks you to determine if access to public transportation is associated with customer spending. As a first step, you formulate the following model: log(spendi)= 4.6 + 1.32 log(income;)+0.46hhsize; + 0.56 publici + ui (1.45) (0.70) (0.75) (0.32) where i indexes customers; spend is customer spending at the nearest company store; income is household income; hhsize is household size; and publicis a dummy variable that equals 1 if the customer used public transportation to arrive at the store, o otherwise. The model is estimated on a sample of n = 3,000 customers. Suppose you wish to test the hypothesis that elasticity of spending with respect to household income is equal to one. What would you conclude at the 5% level of significance? O Reject H Fail to reject H. There is not enough information to answer this question

????? 3 Real > Test 3 Real e sure you save or submit your work before returning Reset Selection ext Save ton 2 of 18 Points Emma wants know about the Phillips Curve (PC). Which of the following statements is correct about it? a 99. O A. Considering the PC, then when the short-run AS curve is constant a larger increase in AD leads to a larger increase in the inflation rate O B. Considering the PC, then when the short-run AS curve is constant, a larger increase in AD leads to a smaller increase in the price level C. Considering the PC, then when the short-run AS curve is constant, a larger increase in AD leads to a smaller increase in the inflation rate O D. All of the other answers are incorrect O E. Considering the PC, then when the short-run AS curve is constant, a larger increase in AD leads to a larger increase in the price level