Answer (Choose 1 answer)
(See picture)
A. $3.27 billion
B. $3.26 billion
C. $3.64 billion
D. $2.90 billion
E. None of the other choices is correct
An economist is interested to see how consumption for an economy (in $ billions)is influenced by gross domestic product ($ billions) and aggregate price (consumerprice index). The Microsoft Excel output of this regression is partially reproduced below (see the picture).
SUMMARY OUTPUT
Regression Statistics
Multiple R R Square
0.991
0.982
Adjusted R Square
0.976
Standard Error
0.299
Observations
10
ANOVA
df
SS
Regression
2
33.4163
Residual
7
0.6277
MS
16.7082
0.0897
F
186.325
Signif F
0.0001
Total
9
34.0440
Coeff
StdError
Stat
P-value
Intercept
-0.0861
0.5674
-0.152
0.8837
GDP
0.7654
Price
0.0006
0.0574
0.0028
-0.219
13.340
0.0001
0.8330
What is the estimated mean consumption level for an economy with GDP equal to $4 billion and an aggregate price index of 120?
Ext (44
