The data file Homework3.Question5.xlsx, has data from the United States. The variables included in the data set are

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.

I already Run the regression analysis in excel. Please answer the above questions based on the results below.

Below is my output results

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