Economics: Data are available for a number of recent years for the U. S. economy. The objective is to understand the relationship between three economic indicators and the U. S. Gross Domestic Product (GDP): The interest rate on 10 year U. S. Treasury notes (as a proportion), the price of crude oil (in USD per barrel), and the amount of consumer debt (in billions of USD). Therefore, a model was built to predict GDP (in trillions of USD) using interest rate, price of crude oil, and consumer debt. Use the information listed below. THE RAW DATA FOR THIS QUESTION ARE **NOT** AVAILABLE TO YOU. Use the output below to answer the following questions. ANOVA
df SS MS F-statistics p-value
Regression 3 9.438 3.146 629.00 <0.0001
Residual 13 0.070 0.005
Total 16 9.508
Coefficients Standard Error t-Statistic p-value
Intercept -0.565 0.181 -0.889 6.458
Interest Rate -0.889 6.458 -0.138 0.8926
Crude Oil 0.027 0.017 1.588 0.1326
Consumer Debt 0.583 0.024 24.292 0.0001
a) State the model equation.
CONSUMER DEBT = β_INTEREST RATE + β2CRUDE OIL + β2GDP
b) GDP = β1LINTEREST RATE + β2CRUDE OIL + β2CONSUMER DEBT
c) INTEREST RATE - βo + β1GDP + β2CRUDE OIL + β2CONSUMER DEBT
d) INTEREST RATE = βAGDP + β2CRUDE OIL + β2CONSUMER DEBT
e) CONSUMER DEBT = βo + β1 INTEREST RATE + β2CRUDE OIL + β2GDP
b) By how much does the model estimate GDP would change due to a $1 increase in the price of crude oil (assuming all other things are constant)?