You collect data on the number of children a person has, whether or not they have graduate degrees (dummy) and their income (in thousands). You estimate the following SRF:
Children_hat = 3.5 - 0.01Income - 1.1Grad_Degree
What is the predicted number of children for someone with a graduate degree earning $60,000?
A. 1.8
B. 2
C. -598
D. 2.9
Answer: A. 1.8