EXHIBIT 3 Number Year Price Index* 188.9 1 2004 2 2005 195.3 3 2006 201.6 4 2007 207.3 5 2008 215.3 6 2009 214.5 7 2010 Gross Income 60,056 61,257 62,482 63,732 65,007 66,307 67,633 68,986 70,366 71,773 73,208 74,672 76,165 77,688 79,242 218.1 224.9 8 2011 9 229.6 2012 2013 10 233.0 11 236.7 2014 2015 12 237.0 240.0 13 2016 14 245.1 2017 2018 15 251.1 Q. 2. How do you interpret the price indices in Exhibit 3? How do economists construct them? Use Excel regression to analyze the relationship between the adjusted price index (dependent variable and year (independent variable). Interpret your regression findings by discussing the coefficient of determination (R-squared), the regression coefficient, the regression equation, and the p-value. Can you use the regression equation to predict the price indices? Take into account statistical, macroeconomic, and other considerations