SCENARIO 18-5 You Worked as an Intern at We Always Win Car

question 184

Short Answer

SCENARIO 18-5
You worked as an intern at We Always Win Car Insurance Company last summer.You notice that individual car insurance premiums depend very much on the age of the individual,the number of traffic tickets received by the individual,and the population density of the city in which the individual lives.You performed a regression analysis in EXCEL and obtained the following information:

-Referring to Scenario 18-5,to test the significance of the multiple regression model,the p-value of the test statistic in the sample is .

---

Definitions:

Aggregate Demand

The total market demand for goods and services within an economy at a fixed price level over a certain time period.

Crowding-Out Effect

The offset in aggregate demand that results when expansionary fiscal policy raises the interest rate and thereby reduces investment spending.

Government Spending

The total amount of money that a government expends on public services, social welfare programs, infrastructure, and defense, among other areas.

Interest Rates

A charge, expressed in terms of a percentage of the principal, applied by a lender to a borrower for using its resources.