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).Annual data Copyright ©2019 Pearson Education,Inc.
A Roadmap for Analyzing Data 18-23
From 30 years were collected.Which of the following would be the most appropriate analysis to perform?
A)Simple linear regression.
B)Multiple linear regression.
C)Exponential smoothing.
D)Autoregressive modeling for trend fitting and forecasting

Question

Quizplus · Accepted Answer

Since the economist is interested in analyzing how consumption is influenced by both GDP and aggregate price, a multiple linear regression would be the most appropriate analysis to perform. Simple linear regression would only consider the relationship between consumption and one predictor variable (either GDP or aggregate price), while exponential smoothing and autoregressive modeling are time series forecasting techniques, which may not be the primary objective of the analysis.

An Economist Is Interested to See How Consumption for an Economy