Solution Found!
Do blondes raise more funds? Refer to the EconomicLetters
Chapter 12, Problem 88E(choose chapter or problem)
Do blondes raise more funds? Refer to the EconomicLetters (Vol. 100, 2008) study of whether the color of a female solicitor’s hair impacts the level of capital raised, Exercise 12.75 (p. 712). Recall that 955 households were contacted by a female solicitor to raise funds for hazard mitigation research. In addition to the household’s level of contribution (in dollars) and the hair color of the solicitor (blond Caucasian, brunette Caucasian, or minority female), the researcher also recorded the beauty rating of the solicitor (measured quantitatively, on a 10-point scale).
a. Write a first-order model (with no interaction) for mean contribution level, E(y), as a function of a solicitor’s hair color and her beauty rating.
b. Refer to the model, part a. For each hair color, express the change in contribution level for each 1-point increase in a solicitor’s beauty rating in terms of the model parameters.
c. Write an interaction model for mean contribution level, E(y), as a function of a solicitor’s hair color and her beauty rating.
d. Refer to the model, part c. For each hair color, express the change in contribution level for each 1-point increase in a solicitor’s beauty rating in terms of the model parameters.
e. Refer to the model, part c. Illustrate the interaction with a graph.
Questions & Answers
QUESTION:
Do blondes raise more funds? Refer to the EconomicLetters (Vol. 100, 2008) study of whether the color of a female solicitor’s hair impacts the level of capital raised, Exercise 12.75 (p. 712). Recall that 955 households were contacted by a female solicitor to raise funds for hazard mitigation research. In addition to the household’s level of contribution (in dollars) and the hair color of the solicitor (blond Caucasian, brunette Caucasian, or minority female), the researcher also recorded the beauty rating of the solicitor (measured quantitatively, on a 10-point scale).
a. Write a first-order model (with no interaction) for mean contribution level, E(y), as a function of a solicitor’s hair color and her beauty rating.
b. Refer to the model, part a. For each hair color, express the change in contribution level for each 1-point increase in a solicitor’s beauty rating in terms of the model parameters.
c. Write an interaction model for mean contribution level, E(y), as a function of a solicitor’s hair color and her beauty rating.
d. Refer to the model, part c. For each hair color, express the change in contribution level for each 1-point increase in a solicitor’s beauty rating in terms of the model parameters.
e. Refer to the model, part c. Illustrate the interaction with a graph.
ANSWER:Step 1 of 11
(a)
Find the first-order model.
The data represent the level of contribution was recorded as the hair color of the solicitor. The hair color can be classified as Blond Caucasian, Brunette Caucasian or Minority female and beauty ratings. Therefore, the two dummy variables can be constructed, which are defined as follows: