TABLE 14-5 A Microeconomist Wants to Determine How Corporate Sales Are Influenced

question 198

Multiple Choice

TABLE 14-5
A microeconomist wants to determine how corporate sales are influenced by capital and wage spending by companies.She proceeds to randomly select 26 large corporations and record information in millions of dollars.The Microsoft Excel output below shows results of this multiple regression.
-Referring to Table 14-5,when the microeconomist used a simple linear regression model with sales as the dependent variable and wages as the independent variable,she obtained an r² value of 0.601.What additional percentage of the total variation of sales has been explained by including capital spending in the multiple regression?

• A)60.1%
• B)31.1%
• C)22.9%
• D)8.8%

---

Definitions:

Fossil Fuels

Fossil fuels, including coal, oil, and natural gas, are energy sources formed from the decayed remains of ancient plants and animals, accumulated and altered over millions of years.

Detrital Food Web

A complex network of food chains based on the consumption of dead organic matter (detritus) by decomposers and detritivores.

Grazing Food Web

A community of organisms where the primary energy transfer is through consumption of plants (primary producers) by herbivores (grazers).

Atmospheric Carbon Dioxide

A greenhouse gas present in the Earth's atmosphere, contributing to the greenhouse effect and global warming.