(Choose 1 answer)
(See picture)
A. $1.33 billion
B. $2.52 billion
C. $0.48 billion
D. - $2.52 billion
An economist is interested to see how consumption for an economy (in $ billions) is influenced by gross domestic product ($ billions) and aggregate price (consumer price index). The Microsoft Excel output of this regression is partially reproduced below.
SUMMARY OUTPUT
Regression Statistics
Multiple R
0.991
R Square
0.982
Adjusted R Square
0.976
Standard Error Observations
0.299
10
ANOVA
df
SS
MS
Regression Residual
2
7
Total
33.4163 0.6277
34.0440
F
16.7082 0.0897
Signif F
186.325 0.0001
Coeff
Intercept
-0.0861
GDP
0.7654
StdError
0.5674 -0.152
0.0574 13.340
t Stat
P-value
0.8837
0.0001
Price
-0.0006
0.0028 -0.219
0.8330
One economy in the sample had an aggregate consumption level of $3 billion, a GDP of $3.5 billion, and an aggregate price level of 125.What is the residual for this data point?
4
