Consider the following estimated regression equation which models the expenditure on food of single people ...

1) Consider the following estimated regression equation which models the expenditure on food of single people: est Exp = 5060.24 – 528.99D + 0.089Inc

where

Exp is annual expenditure on food ($)

D is a dummy with D=1 for females and D=0 for males Inc is annual after tax income ($)

a) Write out the separate equations for males and for females

b) Sketch the 2 equations from (a) above

c) Interpret the estimated coefficient on the variable D

d) Predict expenditure on food for a female with annual income $100 000