16. Data on electric power consumption (in bilfions of kilowatt-hour). GNP (in bil-. lions of dollars), and electricitynies (in cenis per iatowatt-houri for the period 1969-i983 are shown here. lear...

Extracted text: 16. Data on electric power consumption (in bilfions of kilowatt-hour). GNP (in bil-. lions of dollars), and electricitynies (in cenis per iatowatt-houri for the period 1969-i983 are shown here. lear Consumption GNP Irice 1969 407.9 $ 944.0 2.09¢ 1970 447.8 992.7 2.10 1971 479.1 1,077.6 2.19 1972 511.4 1.185.9 2.29 1973 554.2 1,326.4 2.38 1974 555.0 1,434.2 2.83 1975 S86.1 1.594.2 3.21 1976 613.1 1,718.0 3.45 1977 652.3 .1,918.3 3.78 1978 679.2 2,163.9 4.03 1979 696.0 2,417.8 4.43 1980 134.4 2,63!.7 5.12 1981 730.5 2,957.8 S.S0 1982 732.7 3,069.3 1.44 1983 750.9 3.304.8 6.83 a. Using regression analysis, estimate consumption as a linear function of GNP, price, and the previous year's electricity consumption. (NOTE: assume 1968 consump- tion was $367.7 billion.) Write the equation, 1-statistics, and the coefficient of de- termination. Are the signs of the estimated coefficients consistent with economic theory? Which of the coefficients are statistically significant at the 0.05 level? b. In 1984, GNP was $3661.3 billion and the price of electricity was 7.16 cents p kilowatt-hour. Use the estimating equation from part (a) to predict electric E consumption for 1984.