Instruction 13 ANOVA Note: Adj R Square = Adjusted R Square; Std

question 237

Multiple Choice

Instruction 13.29
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.
OUTPUT
SUMMARY
Regression Statistics
$\begin{array} { l l } \text { MultipleR } & 0.991 \\ \text { R Square } & 0.982 \\ \text { Adj. R Square } & 0.976 \\ \text { Std. Error } & 0.299 \\ \text { Observations } & 10 \end{array}$

ANOVA
$\begin{array} { l l l l l l } & d f & \text { SS } & \text { MS } & F & \text { Signiff } \\ \text { Regression } & 2 & 33.4163 & 16.7082 & 186.325 & 0.0001 \\ \text { Residual } & 7 & 0.6277 & 0.0897 & & \\ \text { Total } & 9 & 34.0440 & & & \\ & & & & & \\ & \text { Coeff } & \text { StdError } & t \text { Stat } & p \text { value } & \\ \text { Intercept } & - 1.6335 & 0.5674 & - 0.152 & 0.8837 & \\ \text { GDP } & 0.7654 & 0.0574 & 13.340 & 0.0001 & \\ \text { Price } & - 0.0006 & 0.0028 & - 0.219 & 0.8330 & \end{array}$ Note: Adj. R Square = Adjusted R Square; Std. Error = Standard Error
-Referring to Instruction 13.29,to test for the significance of the coefficient on aggregate price index,the value of the relevant t-statistic is

• A) -0.219.
• B) 0.143.
• C) -1.960.
• D) 2.365.

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Definitions:

Personal Needs

The basic or individual requirements essential for people to live and work comfortably and efficiently.

Common Purpose

A shared goal or mission that unites a group of individuals or entities.

Chaos Theory

A field of study in mathematics and science that deals with complex systems whose behavior is highly sensitive to slight changes in conditions, leading to unpredictability.

Unknowable Complexity

A term describing situations or systems that are so complex they cannot be fully understood or predicted.