TABLE 14-3
an Economist Is Interested to See How $\text {SUMMARY OUTPUT}$

question 4

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.
$\text {SUMMARY OUTPUT}$

$\begin{array}{lc}\hline \text { Regression Statistics } \\\hline \text {Multiple R} & 0.991 \\ \text {R Square }& 0.982 \\ \text {Adjusted R Square }& 0.976 \\ \text {Standard Error }& 0.299 \\ \text {Observations }& 10 \\\hline\end{array}$

ANOVA
$\begin{array}{lrrrrr}\hline & \text { d f}& \text { SS } & \text {MS } & \text { F } & \text {Significance F } \\\hline \text { Regression} & 2 & 33.4163 & 16.7082 & 186.325 & 0.0001 \\ \text {Residual }& 7 & 0.6277 & 0.0897 & & \\ \text {Total} & 9 & 34.0440 & & & \\\hline\end{array}$


$\begin{array}{lcccr}\hline & \text {Coefficients} & \text { Standard Error} & \text { t Stat }& \text { p -value} \\\hline \text {Intercept }& -0.0861 & 0.5674 & -0.152 & 0.8837 \\ \text {GDP} & 0.7654 & 0.0574 & 13.340 & 0.0001 \\ \text {Price }& -0.0006 & 0.0028 & -0.219 & 0.8330 \\\hline\end{array}$

-Referring to Table 14-3, to test whether aggregate price index has a negative impact on consumption, the p-value is

• A) 0.8330.
• B) 0.8837.
• C) 0.4165.
• D) 0.0001.

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Definitions:

Adjusted Trial Balance

A list of all accounts and their balances after adjusting entries have been made, used to verify the balance of debits and credits.

Current Assets

Resources anticipated to be cashed in, disposed of, or utilized within a year or the standard operating period of the company.

Adjusted Trial Balance

An adjusted trial balance is a list of all account titles and balances after adjustments have been made for accruals, deferrals, and other adjustments, ensuring the accounts are balanced before preparing financial statements.

Total Liabilities

The sum of all financial obligations a company owes to external parties, including loans, accounts payable, and mortgages.