SCENARIO 13-5
a Microeconomist Wants to Determine How Corporate Sales

question 305

Multiple Choice

SCENARIO 13-5
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. SUMMARY OUTPUT
Regression Statistics
$\begin{array} { l l } \text { Multiple R } & 0.830 \\ \text { R Square } & 0.689 \\ \text { Adjusted R Square } & 0.662 \\ \text { Standard Error } & 17501.643 \\ \text { Observations } & 26 \end{array}$
ANOVA
$\begin{array} { l r c c c c } & d f & \text { SS } & \text { MS } & F & \text { Signif } F \\ \text { Regression } & 2 & 15579777040 & 7789888520 & 25.432 & 0.0001 \\ \text { Residual } & 23 & 7045072780 & 306307512 & & \\ \text { Total } & 25 & 22624849820 & & & \end{array}$


$\begin{array}{lrrrr} & \text { Coeff } & \text { StdError } & t \text { Stat } & \text { P-value } \\\text { Intercept } & 15800.0000 & 6038.2999 & 2.617 & 0.0154 \\\text { Capital } & 0.1245 & 0.2045 & 0.609 & 0.5485 \\\text { Wages } & 7.0762 & 1.4729 & 4.804 & 0.0001\end{array}$

-Referring to SCENARIO 13-5, what is the p-value for testing whether Wages have a positive impact on corporate sales?

• A)0.01
• B)0.05
• C)0.0001
• D)0.00005

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Definitions:

Location Economies

Cost advantages achieved by a firm due to its geographical location, influencing factors like production, logistics, and access to markets or resources.

Sheet Glass

A type of glass made by floating molten glass on a bed of molten metal to produce a flat surface, commonly used in windows, mirrors, and glass doors.

Transnational Approach

An approach taken by companies that see themselves as without a national identity and operate on a global scale, beyond geographical and cultural boundaries.

Knowledge Flow

The process by which knowledge is transferred from one part of an organization to another, or between organizations, enhancing learning and innovation.