Determine additional percentage of the total variation

Reference no: EM1355931

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, when the economist used a simple linear regression model with consumption as the dependent variable and GDP as the independent variable, he obtained an r2 value of 0.971. What additional percentage of the total variation of consumption has been explained by including aggregate prices in the multiple regression?

A) 98.2
B) 1.1
C) 2.8
D) 11.1

Reference no: EM1355931

Questions Cloud

Question on private business competition : Choose an article on Private Business Competition from a professional, economic, or management journal published in the last ten years such as The Freeman: Ideas On Liberty, The Economist, Forbes, The Cato Journal, Harvard Business Review, or Sloa..

Carnival cruise line global social changes and opportunities : Carnival Cruise Line Global Social Changes and Opportunities - Explain the global forces that have contributed to the growth of the cruise-line industry.

Equity method journal entries : What are the equity method journal entries typically recorded by a parent company? Provide examples in your response.

Diagnosis of schizophrenia : An explanation of whether psychosis-related symptoms are always indicative of a diagnosis of schizophrenia and why or why not; and possible alternative diagnoses for the psychosis-related symptoms.

Determine additional percentage of the total variation : An economist is interested to see how consumption for an economy is influenced by gross domestic product and aggregate price.

Explain what is the overall relationship between laws : Explain What is the overall relationship between laws and ethics and In regard to the field of human resources

How long does b takes to acknowledge : Assume that no packet or acknowledgement are dropped. Assume that A sends a packet to C and waits for its acknowledgement to come back from C. How long does it take until A gets that acknowledgement?

Knowledge management and r and d : Explain what factors will you consider to determine if the Argentine subsidiary is acting on good-faith efforts in the best interest of the MNE, or if it is promoting its own self-interest, such as power, prestige and jobs?

Illustrate how do these two relate to each other : Illustrate how do these two relate to each other in the Circular Flow Economy and to the Government and Foreign Sector components? How does all this fit on a Wheel of Income.

User Account

All Pages