TABLE 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.

-Referring to Table 13-3, to test for the significance of the coefficient on gross domestic product, the p-value is ________.
A) 0.0001
B) 0.8330
C) 0.8837
D) 0.9999

Question

TABLE 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.
 
-Referring to Table 13-3, to test for the significance of the coefficient on gross domestic product, the p-value is ________.
A) 0.0001 
B) 0.8330 
C) 0.8837 
D) 0.9999

Quizplus · Accepted Answer

The p-value for the coefficient on gross domestic product is 0.0001, which is less than the typical significance level of 0.05. This means that the coefficient is statistically significant and we can reject the null hypothesis that it is equal to zero.

TABLE 13-3 an Economist Is Interested to See How Consumption for an for an Economy