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 ) (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)?