In a Cross Section Regression of 48 States,the Following Linear

question 27

Multiple Choice

In a cross section regression of 48 states,the following linear demand for per-capita cans of soda was found: Cans = 159.17 - 102.56 Price + 1.00 Income + 3.94Temp $$\begin{array} { l r r r } \hline & \text { Coeffcients}& \text { Standard Error } & t \text { Stat } \\\hline \text { Intercept } & 159.17 & 94.16 & 1.69 \\\text {Price } & - 102.56 & 33.25 & - 3.08 \\\text { Income } & 1.00 & 1.77 & 0.57 \\\text { Temperature } & 3.94 & 0.82 & 4.83 \\\hline\end{array}$$
$\mathrm { R } - \mathrm { Sq } = 54.1 \% \quad \mathrm { R } - \mathrm { Sq } ( \mathrm { adj } ) = 51.0 \%$
From the linear regression results in the cans case above, we know that:

• A) Price is insignificant
• B) Income is significant
• C) Temp is significant
• D) As price rises for soda,people tend to drink less of it
• E) All of the coefficients are significant

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