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

question 91

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 $2 billion and an aggregate price index of 90?

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

---

Definitions:

Life Expectancy

The statistical measure of the average time an organism is expected to live, based on factors like genetics, lifestyle, and environment at the time of birth.

Primary Tastes

The basic taste sensations experienced by humans, traditionally categorized as sweet, sour, salty, bitter, and umami.

Umami

One of the five basic tastes, often described as savory or meaty, and associated with foods containing glutamate, such as tomatoes, cheese, and soy sauce.

Flavor

The combined sensory perception of taste, smell, and, in some definitions, mouthfeel, contributing to the overall experience of consuming food or drink.