MAE356 Deakin University Household Recreation Expenses Regression Models Paper

It is well known in economic literature that consumption depends on a number of factors including income, choice and socio-cultural background of individuals. Suppose you are interested to examine the recreational expenses of Australian households and the factors that drive such expenses. You obtain data on the household weekly recreational expenses (recexp); household weekly disposable income (inc); number of children under the age of 15 years (chd); a dummy variable representing the sex of the household primary income earner (male) that takes a value of 1 for males and 0 otherwise; and a dummy variable representing the country of birth (cob) of the household head that takes a value of 1 if the individual is born in Australia and 0 otherwise. These details of the variables are also provided in the datafile.