Suppose Investment Is Equal to $950 Billion,purchases of Newly Produced

question 55

Multiple Choice

Suppose investment is equal to $950 billion,purchases of newly produced capital goods is $670 billion,and changes in business inventories is -$120 billion.What does purchases of new residential housing equal?

• A) $1,500 billion
• B) $100 billion
• C) $160 billion
• D) $400 billion

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Definitions:

Determination

In the context of statistical analysis, often refers to the degree of variance in observations explained by the model, usually in the form of the coefficient of determination (R-squared).

Estimated Regression Equation

An equation that estimates the relationship between dependent and independent variables in a regression model.

SST

Total Sum of Squares; a measure that quantifies the total variance in the dependent variable that is to be explained by the independent variable(s) in a model.

SSE

Stands for the Sum of Squared Errors, a measure used in statistics to describe the discrepancy between the data and an estimation model.