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 whether aggregate price index has a positive impact on consumption, the p-value is ________.
A) 0.0001
B) 0.4165
C) 0.5835
D) 0.8330

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 whether aggregate price index has a positive impact on consumption, the p-value is ________.
A) 0.0001 
B) 0.4165 
C) 0.5835 
D) 0.8330

Quizplus · Accepted Answer

The p-value for the aggregate price index coefficient is 0.5835, which is greater than the significance level of 0.05. Therefore, we fail to reject the null hypothesis that there is no significant relationship between aggregate price index and consumption, and conclude that there is not a positive impact of aggregate price index on consumption.

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