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

question 62

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 gross domestic product has a positive impact on consumption, the p-value is

• A) 0.0001.
• B) 0.9999.
• C) 0.99995.
• D) 0.00005.

---

Definitions:

Self-Serving Bias

A common tendency for people to attribute positive outcomes to their own character but attribute negative outcomes to external factors.

Fundamental Attribution Error

The tendency to overemphasize personality traits and underestimate situational influences when explaining others' behavior.

Self-Perception Theory

The hypothesis that individuals determine their attitudes and preferences by interpreting the meaning of their own behavior.

Cognitive Dissonance

A psychological discomfort experienced when holding two or more conflicting cognitions (beliefs, attitudes, or values).