TABLE 14-5
a Microeconomist Wants to Determine How Corporate Sales

question 21

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.
$$\begin{array}{l}\text { Regression Statistics }\\\begin{array} { l r } \hline \text { Multiple R } & 0.830 \\\text { R Square } & 0.689 \\\text { Adjusted R Square } & 0.662 \\\text { Standard Error } & 17501.643 \\\text { Observations } & 26\end{array}\end{array}$$

ANOVA
$\begin{array}{lcrrrr}\hline & \text { d f }&\text { S S } & \text { M S } & \text { F }&\text { Significance F } \\\hline \text {Regression} & 2 & 15579777040 & 7789888520 & 25.432 & 0.0001 \\\text {Residual }& 23 & 7045072780 & 306307512 & & \\\text {Total }& 25 & 22624849820 & & & \\\hline\end{array}$

$$\begin{array} { l c c c c } & \text { Coefficients } & \text { Standard Error} & \text { t Stat } & \text { p-value } \\\text { Intercept } & 15800.0000 & 6038.2999 & 2.617 & 0.0154 \\\text { C apital } & 0.1245 & 0.2045 & 0.609 & 0.5485 \\\text { W ages } & 7.0762 & 1.4729 & 4.804 & 0.0001 \\\hline\end{array}$$

-Referring to Table 14-5, at the 0.01 level of significance, what conclusion should the microeconomist draw regarding the inclusion of Capital in the regression model?

• A) Capital is significant in explaining corporate sales and should be included in the model because its p-value is more than 0.01.
• B) Capital is not significant in explaining corporate sales and should not be included in the model because its p-value is less than 0.01.
• C) Capital is not significant in explaining corporate sales and should not be included in the model because its p-value is more than 0.01.
• D) Capital is significant in explaining corporate sales and should be included in the model because its p-value is less than 0.01.

Understand the volcanic and tectonic activity on the Moon and other celestial bodies.

Describe the composition of Saturn's rings.

Explain how the phases of the Moon occur and their effect on its appearance from Earth.

Understand the Global Reporting Initiative, its goals, and its importance for sustainable business practices.

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Definitions:

Global Market Entry Strategy

Plans and methodologies developed by businesses to enter international markets, considering factors like market analysis, entry mode, and competitive dynamics.

Political and Regulatory Climate

The current environment and trends in government policies and regulations that affect businesses and markets.

Macrofinancing

Financial operations and policies on a large scale, often involving significant amounts of money and impacting the broader economy.

Exporting

The process of trading products or services made in one country with purchasers in a different country.