Consider the following results of a simple regression model of dollar price of unleaded gas (dependent variable) and dollar price of crude oil (independent variable):

Coefficient	t-statistics
Intercept	0.56	28.27
Crude Oil	0.0457	73.34

R-square = 0.87

1. What will be expected change in the price of unleaded gas if the crude oil price is expected to fall by 7%. The current price of crude oil and unleaded gas are $74 and $3.10 respectively?

1. (7.89%)
2. (6.85%)
3. (7.25%)
4. (7.64%)

2. What will be forecasted price of unleaded gas if the crude oil price is expected to fall by 3%. The current price of crude oil and unleaded gas are $74 and $3.10 respectively?

1. $3
2. $2.93
3. $2.86
4. $3.07

3. What is the interpretation of coefficient for crude oil?

1. Every $1 increase in crude price will cause unleaded gas price to increase by 4.57 cents.
2. Every $1 increase in crude price will cause unleaded gas price to increase by 4.57 %.
3. Every 1% increase in crude price will cause unleaded gas price to increase by 4.57%.
4. Every 1% increase in crude price will cause unleaded gas price to increase by 4.57 cents.

4. What will be forecasted price of unleaded gas when the crude oil price is $80?

1. $3.99
2. $4.44
3. $4.22
4. $4.67