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

question 71

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 p-value is

• A) 0.0001.
• B) 0.9999.
• C) 0.8837.
• D) 0.8330.

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Definitions:

Administrative Orbiting

Delaying action on a conflict by buying time.

Jurisdictional Ambiguity

A situation where the authority or control over an area or subject matter is unclear, leading to confusion or conflict.

Delaying Action

A tactical or strategic decision to postpone an action or decision in order to gain more time, information, or advantage.

Withdrawal Mechanism

Psychological or physical strategies used by individuals to disengage or disconnect from stressful or uncomfortable situations.