Regression Statistics Basket of Goods 1 Basket of Goods 2 Basket of Goods 3 Multiple R 0.484 0.746 0.348 R square 0.234 0.556 0.121 Adjusted R Square 0.216 0.546 0.101 Standard Error 0.429 0.421 0.418 Observations 45 45 45 Basket of Goods 1 Coefficients Standard Error t Stat P-value Intercept 7.198 0.231 31.128 Basket of Goods1 0.02 3.626 0.001 Basket of Goods 2 Coefficients Standard Error t Stat P-value Intercept 3.765 0.6 6.279 0 Basket of Goods2 0.427 0.058 0 Basket of Goods 3 Coefficients Standard Error t Stat P-value Intercept 7.139 0.343 20.845 0 Basket of Goods3 0.078 0.032 2.433Assume that assumptions for simple linear regression are satisfied. Use the above tables to answer the following questions, either choose the most correct option, or type in the answer to the number of decimal places specified. 1. (2 mark) What is the value of the regression slope between CPI and Basket of Goods 1? (3dp - remember to include a negative sign if appropriate) with the degrees of freedom equals to (integer) 2. (1 mark) What is the absolute value of the test statistic for CPI and Basket of Goods 2? (3dp) 3. (2 mark) Is there a significant linear relationship between CPI and Basket of Goods 3 The economists are interested in which basket of goods most accurately predicts CPI. Use the regression results to answer the following questions. 4. (1 marks) Which variable is a better predictor of CPI? A: Basket of Goods 1. B: Basket of Goods 2. C: Basket of Goods 3. D: None of them is a good predictor of CPI. 5. (2 marks) Why? Choose the most appropriate answers to justify your answer to Question 4 above. A. Correlation between CPI and Basket of Goods 1 is the highest. B. Correlation between CPI and Basket of Goods 2 is the highest. C. Correlation between CPI and Basket of Goods 3 is the highest. D. The slope of regression equation for the linear relationship between CPI and Basket of Goods 1 was significantly different than zero. E. The slope of regression equation for the linear relationship between CPI and Basket of Goods 2 was significantly different than zero. F. The slope of regression equation for the linear relationship between CPI and Basket of Goods 3 was significantly different than zero. G. Both A & D H. Both B & E I. Both C & F J. There is not enough information to make a decision