ECON1064 Final Assessment Questions On Quantitative Analysis

Question 6

The variable income (yearly) is examined in a regression setting where the predictor variable is lag (1) of income and the following output is produced.
a) Write down the regression equation. (3 marks).
b) Interpret the meaning of the slope. (3 marks).
c) A dummy variable for gender (male=0, female=1) was added to the model. Interpret its coefficient of -0.2. (3 marks).