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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):

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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): R-square =0.87 What will be expected change in the price of unleaded gas if the crude oil price is expected to fall by 1%. The current price of crude oil and unleaded gas are $74 and $3.10 respectively? a. (0.97%) b. (6.85%) c. (0.89%) d. (1.09%)

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