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:

Social Relationships

Connections between individuals in a society that involve various forms of interaction, communication, and dependency.

Deprivation

The damaging lack of material benefits considered to be basic necessities in a society.

Collective Action

The phenomenon of people coming together and pooling their resources, often in the context of movements or initiatives, to achieve common goals.

Well-Integrated Members

Individuals who are fully incorporated into the social, cultural, and economic structures of a society, having both rights and obligations.