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

question 97

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 predicted 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:

Mutation

A new gene or combination of genes.

Psychological Processes

Encompass the functions of the mind, including cognition, emotion, perception, and behavioral patterns, integral to understanding human behavior.

Nature

The inherent qualities or properties of something; often refers to the physical world and its phenomena not made by human beings.

Culture

An information-based system that includes shared ideas and common ways of doing things.