Test for both different intercept and slope

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Reference no: EM13891731

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

(a) Regress on Y.

(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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