TABLE 14-3
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 14-3, 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 14-3
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 14-3, 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 0.4165, which is greater than the significance level of 0.05. Therefore, we fail to reject the null hypothesis that there is no significant impact of aggregate price index on consumption. In other words, there is no evidence that aggregate price index has a positive or negative impact on consumption.

TABLE 14-3 an Economist Is Interested to See How Consumption for an for an Economy