Instruction 13-3
an Economist Is Interested to See How Consumption

question 238

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.
SUMMARY
Regression Statistics
$\begin{array} { l l } \text { Multiple R } & 0.991 \\ \text { R Square } & 0.982 \\ \text { Adj. R Square } & 0.976 \\ \text { Std. Error } & 0.299 \\ \text { Observations } & 10 \end{array}$
ANOVA
$\begin{array} { l l l l l l } & \boldsymbol { d f } & \text { SS } & \text { MS } & \boldsymbol { F } & \text { Signiff } \\ \text { Regression } & 2 & 33.4163 & 16.7082 & 186.325 & 0.0001 \\ \text { Residual } & 7 & 0.6277 & 0.0897 & & \\ \text { Total } & 9 & 34.0440 & & & \\ & & & & & \\ & \text { Coeff } & \text { StaError } & \boldsymbol { t } \text { Stat } & \boldsymbol { P } \text {-Value } & \\ \text { Intercept } & - 1.6335 & 0.5674 & - 0.152 & 0.8837 & \\ \text { GDP } & 0.7654 & 0.0574 & 13.340 & 0.0001 & \\ \text { Price } & - 0.0006 & 0.0028 & - 0.219 & 0.8330 & \end{array}$ Note: Adj.R Square = Adjusted R Square;Std.Error = Standard Error
-Referring to Instruction 13-3,to test whether gross domestic product has a positive impact on consumption,the p-value is

• A)0.0001.
• B)0.99995.
• C)0.00005.
• D)0.9999.

---

Definitions:

Manumission

The act of a slave owner freeing their slaves, particularly in historical contexts prior to the abolition of slavery.

Heavy Bonds

Financial securities that are issued with high interest rates, typically reflecting a high level of risk associated with the issuer.

Chesapeake's Population

The number of people residing in the Chesapeake region, historically known for its tobacco cultivation and diverse demographics, including European settlers, African slaves, and indigenous peoples.

Pinkster

An Afro-Dutch festival celebrated in parts of the Northeastern United States, particularly New York, which marks the arrival of spring with roots in African-American culture.