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Discussion
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 ) + μ (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)?
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