Real GDPReal GDP of the United States

InflationAnnual Inflation in the United States

Housing PriceAverage annual Housing Prices in the United States

Interest RateAnnual Market Interest rate

UNRATEUnemployment rate

LFPRLabor Force Participation rate - the proportion of the adult population that

is a member of the labor force, the labor force is the sum of all employed and unemployed

GovtEducGovernment expenditure in billions of dollars on education

(a) Run a regression of Real GDP on Inflation, Housing Price, Interest Rate, Unrate, LFPR, and

GovtEduc. Please copy and paste your EXCEL regression output (do not upload your EXCEL file with the results).

(b) What sign would you expect for each of the coefficients (positive or negative)? Please

explain.

(c) Discuss the "Fit" of the regression.

(d) Which coefficients of independent variables in the regression are significant? Please explain.

(e) Which of the variables given above can be used to explain the Real GDP in the United

States? Please explain.

(f) If you had to choose one variable as a policy maker to concentrate on in order to increase

Real GDP in the United States, based on the above regression results, which variable would you choose? Please explain.

SUMMARY OUTPUT

Regression Statistics

Multiple R

0.998567905

R Square

0.997137861

Adjusted R Square

0.996450948

Standard Error

183.4533528

Observations

32

ANOVA

df

SS

MS

F

Significance F

Regression

6

293126973.3

48854495.56

1451.620948

1.57399E-30

Residual

25

841378.3164

33655.13266

Total

31

293968351.7

Coefficients

Standard Error

t Stat

P-value

Lower 95%

Upper 95%

Lower 95.0%

Upper 95.0%

Intercept

-9982.31664

2816.917669

-3.543701951

0.001581981

-15783.86718

-4180.766101

-15783.86718

-4180.766101

Inflation

-3.007209435

43.00097263

-0.069933521

0.944802977

-91.56937037

85.5549515

-91.56937037

85.5549515

Housing Price

6.333447138

2.652445763

2.387776303

0.024826354

0.87063283

11.79626144

0.87063283

11.79626144

Interest Rate

-88.72708265

36.22095689

-2.449606257

0.021649927

-163.3255398

-14.12862551

-163.3255398

-14.12862551

UNRATE

-235.3093415

32.13938605

-7.321525718

1.13676E-07

-301.5016462

-169.1170369

-301.5016462

-169.1170369

LFPR

265.2753106

40.6803875

6.520963218

7.87274E-07

181.4924842

349.0581369

181.4924842

349.0581369

GovtEduc

12.01280926

0.64530498

18.61570828

3.64514E-16

10.68377878

13.34183975

10.68377878

13.34183975