Homework answers / question archive / Using the multiple regression results below, answer the questions that follow (standard errors are in parenthesis below coefficient estimates)

Using the multiple regression results below, answer the questions that follow (standard errors are in parenthesis below coefficient estimates)

Economics

Share With

Using the multiple regression results below, answer the questions that follow (standard errors are in parenthesis below coefficient estimates). Assume that savings per year is in dollars, Y is annual income from salary, ED is years of education completed, and F indicates a female respondent:

Savings per year ? 150.5 ? 0.15( Y ) ? 50.90( ED ) ? 222.45( F ) ? ? (20.6) (0.005) (35.80) (52.68)

a) Interpret the coefficient estimate on education. b) Which independent variables are statistically significant? How do you know this? c) What is the marginal propensity to save (MPS)? Consume (MPC)?