Solution-Test for both different intercept and slope

Test for both different intercept and slope

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Reference no: EM13891731

Table gives the consumption expenditures C, the disposable income Yd , and the sex of the head of the household S of 12 random families.

(a) Regress C on Yd .

(b) Test for a different intercept for families with a male or a female as head of the household.

(c) Test for a different slope or MPC (marginal propensity to consume) for families with a male or a female as head of the household.

(d) Test for both different intercept and slope.

(e) Which is the ''best'' result?

Table Consumption, Disposable Income, and Sex of Head of Household of 12 Random Families

Family	1	2	3	4	5	6	7	8	9	10	11	12
C	18,535	11,350	12,130	15,210	8680	16,760	13,480	9680	17,840	11,180	14,320	19,860
Yd	22,550	14,035	13,040	17,500	9430	20,635	16,470	10,720	22,350	12,200	16,810	23,000
S	M	M	F	M	F	M	M	F	M	F	F	M

Reference no: EM13891731

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Test for both different intercept and slope

Reference no: EM13891731

Reference no: EM13891731

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