SCENARIO 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 Scenario 14-3, to test for the significance of the coefficient on gross domestic product, the value is
A)0.0001
B)0.8330
C)0.8837
D)0.9999

Question

SCENARIO 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 Scenario 14-3, to test for the significance of the coefficient on gross domestic product, the  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 given in the "P-Value" column of the Excel output. In this case, the p-value is 0.0001, which is less than the typical significance level of 0.05. Therefore, we reject the null hypothesis and conclude that the coefficient on gross domestic product is statistically significant at the 5% level. The 11ebc114_12aa_ebeb_8acb_dbd5c46d5f96_TB8562_11 value represents the p-value associated with the coefficient on gross domestic product. A p-value less than 0.05 is typically considered significant. In this case, the p-value is very low (0.0001), indicating that the coefficient is statistically significant and not due to chance. Therefore, the best choice is A.

SCENARIO 14-3 an Economist Is Interested to See How Consumption