1. Model with quadratic terms: You estimated the following model: where nettfa is net financial assets and inc is income

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1 Model With Quadratic Terms You Estimated The Following Model Where Nettfa Is Net Financial Assets And Inc Is Income 1 (37.51 KiB) Viewed 14 times

1. Model with quadratic terms: You estimated the following model: where nettfa is net financial assets and inc is income. nettfa | Coef. Std. Err. t age I agesq | inc cons | -2.231489 .0377221 .9782522 4.680388 P>|t| .4897118 -4.56 0.000 .0056214 6.71 0.000 .0254891 38.38 0.000 [95% Conf. Interval] -3.191432 -1.271547 .026703 .0487413 .928288 1.028216 10.08099 0.46 0.642 -15.08056 24.44134 a. Write down the regression equation. Plot relation between age and net financial assets on a graph. Interpret all coefficients. b. Predict average nettfa for age 55 and income 40. Calculate marginal effect at 55. c. Predict average nettfa for age 30. Calculate marginal effect at age 30. d. What is marginal change in nettfa when age goes up? Plot on a graph. What does your graph suggests about marginal effect?