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

question 38

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, the observed value of the F-statistic is given on the printout as 25.432. What are the degrees of freedom for this F-statistic?

• A) 25 for the numerator, 2 for the denominator
• B) 2 for the numerator, 23 for the denominator
• C) 23 for the numerator, 25 for the denominator
• D) 2 for the numerator, 25 for the denominator

---

Definitions:

Variable Costs

Costs that vary directly with the level of production or the volume of services provided.

Variable Costs

Variable costs are expenses that change in proportion to the activity of a business, such as costs for raw materials or production supplies.

Break-even Point

The production level or sales volume at which total revenues equal total costs, resulting in no profit or loss.

Variable Costs

Costs that vary directly with the level of production or the volume of output.