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

question 97

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 fraction of the variability in sales is explained by spending on capital and wages?

• A)27.0%
• B)50.9%
• C)68.9%
• D)83.0%

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Definitions:

Gender Rigid

A term describing attitudes or behaviors that adhere strictly to traditional gender roles and expectations.

Stereotypical Behavior

Repetitive or formulaic actions that are often a response to stress, anxiety, or unmet needs, commonly associated with mental health conditions or developmental disorders.

Ethnic Differences

Variations in practices, traditions, and behaviors among groups of people identified by shared nationality, tribal affiliation, religion, language, or cultural heritage.

Patterns of Growth

The typical progressions or changes in size, shape, and function that an organism undergoes from infancy through adulthood.