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

question 173

Multiple Choice

Instruction 13.3
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.
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
$\begin{array} { l l l l l l } & d f & \text { SS } & \text { MS } & F & \text { Signif F } \\ \text { Regression } & 2 & 33.4163 & 16.7082 & 186.325 & 0.0001 \\ \text { Residual } & 7 & 0.6277 & 0.0897 & & \\ \text { Total } & 9 & 34.0440 & & & \\ & & & & & \\ & \text { Coeff } & \text { StdError } & t \text { Stat } & p \text { value } & \\ \text { Intercept } & - 1.6335 & 0.5674 & - 0.152 & 0.8837 & \\ \text { GDP } & 0.7654 & 0.0574 & 13.340 & 0.0001 & \\ \text { Price } & - 0.0006 & 0.0028 & - 0.219 & 0.8330 & \end{array}$ Note: Adj. R Square = Adjusted R Square; Std. Error = Standard Error
-Referring to Instruction 13.3,what is the estimated average consumption level for an economy with GDP equal to $4 billion and an aggregate price index of 150?

• A) $1.39 billion.
• B) $2.89 billion.
• C) $4.75 billion.
• D) $9.45 billion.

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Definitions:

Psychometric Approach

A method in psychology that involves measuring mental capacities and processes through standardized tests.

Psychometric Method

A methodological approach in psychology that involves the measurement of mental functions, abilities, and processes through standardized tests and questionnaires.

Naturalistic Observation

An observational method where subjects are examined in their natural habitat, without any alterations made by the scientist.

Case Study

An in-depth examination of a single subject, group, event, or situation over a period of time for the purpose of detailed understanding and research.