TABLE 14-3 an Economist Is Interested to See How Consumption for an for an Economy

question 225

Multiple Choice

TABLE 14-3
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.
-Referring to Table 14-3,when the economist used a simple linear regression model with consumption as the dependent variable and GDP as the independent variable,he obtained an r² value of 0.971.What additional percentage of the total variation of consumption has been explained by including aggregate prices in the multiple regression?

• A)98.2
• B)11.1
• C)2.8
• D)1.1

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Definitions:

Conductor

A material that permits the flow of electrical current, often used for making wires and other components in electrical circuits.

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A fundamental branch of physics concerned with the electromagnetic force that occurs between electrically charged particles.

Conductor

A material or object that allows the flow of electrical current in one or more directions.

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Magnetic flux density is a measure of the strength and direction of a magnetic field at a particular point, expressed in teslas (T), indicating how dense the field lines are in that area.