Kizspy | Question: 68
(Choose 1 answer)
(See picture)
A. $2.90 billion
B. $3.26 billion
C. $3.27 billion
D. $3.64 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 (consumer price index). The Microsoft Excel output of this regression is partially reproduced below (see the picture).
SUMMARY OUTPUT
FUOVERFL
Regression Statistics
Multiple R
0.991
R Square
0.982
Adjusted R Square
0.976
Standard Error
0.299
Observations
10
ANOVA
df
SS
MS 16.7082
F 186.325
Regression
2
33.4163
Signif F 0.0001
Residual
7
0.6277
0.0897
Total
9
34.0440
Coeff
StdError
1 Stat
P-value
Intercept
-0.0861
0.5674
-0.152
0.8837
GDP
0.7654
0.0574
13.340
0.0001
Price
0.0006
0.0028 -0.219
0.8330
What is the predicted consumption level for an economy with GDP equal to $4.5 billion and an aggregate price index of 160?
