Question
Consider the following results of a multiple regression model of dollar price of unleaded gas (dependent variable) and a set of independent variables: price of
Consider the following results of a multiple regression model of dollar price of unleaded gas (dependent variable) and a set of independent variables: price of crude oil, value of S&P500, price U.S. Dollars against Euros, personal disposal income (in million of dollars) :
Coefficient | t-statistics | |
Intercept | 0.5871 | 68.90 |
Crude Oil | 0.0651 | 32.89 |
S&P 500 | -0.0020 | 18.09 |
Price of $ | -0.0415 | 14.20 |
PDI | 0.0001 | 17.32 |
R-Square = 97% What is the interpretation of coefficient for PDI?
Every 1 unit increase in the value of PDI will cause unleaded gas price to increase by 0.01 cents. | ||
Every 1 unit increase in the value of PDI will cause unleaded gas price to decrease by 0.01%. | ||
Every 1 unit increase in the value of PDI will cause unleaded gas price to decrease by 0.01 cents. | ||
Every 1% increase in the value of PDI will cause unleaded gas price to decrease by 0.01 cents. |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started