Kizspy Question: 79
(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
Regression Statistics
Multiple R
0.991
R Square
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
1 Stat
Intercept
GDP
-0.0861
0.5674
-0.152
P-value
0.8837
0.7654
0.0574
13.340
0.0001
Price
- 0.0006
0.0028
-0.219
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?
