Purchase Solution

# 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)

Not what you're looking for?

(See attached file for full problem description)

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 OUTPUT

Regression Statistics
Multiple R 0.991
R Square 0.982
Standard error 0.299
Observations 10

ANOVA
df SS MS F SignifF
Regression 2 33.4163 16.7082 186.325 0.0001
Residual 7 0.6277 0.0897
Total 9 34.0440

Coeff StdError t Stat P-Value
Intercept -0.0861 0.5674 -0.152 0.8837
GDP 0.7654 0.0574 13.340 0.0001
Price -0.0006 0.0028 -0.219 0.8330

Referring to the table, when the economist used a simple linear regression model with consumption as the dependent variable and GDP as the independent variable, he obtained an r2 value of 0.971. What additional percentage of the total variation of consumption has been explained by including aggregate prices in the multiple regression?

A. 98.2
B. 11.1
C. 2.8
D. 1.1

##### Solution Preview

Hello!

The correct answer is D. The simple linear regression had explained 97.1% of the total variation in consumption (as ...

##### Measures of Central Tendency

This quiz evaluates the students understanding of the measures of central tendency seen in statistics. This quiz is specifically designed to incorporate the measures of central tendency as they relate to psychological research.

Each question is a choice-summary multiple choice question that presents you with a statistical concept and then 4 numbered statements. You must decide which (if any) of the numbered statements is/are true as they relate to the statistical concept.

##### Measures of Central Tendency

Tests knowledge of the three main measures of central tendency, including some simple calculation questions.

##### Terms and Definitions for Statistics

This quiz covers basic terms and definitions of statistics.