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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 will be forecasted price of unleaded gas if the value of independent variables are as follows: Crude Oil = 85; S&P500 = 1775; Price of $ = 0.90 Euros; PDI = 800
$2.61 | ||
$3.04 | ||
$2.99 | ||
$2.66 |
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