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

question 235

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 Capital has a negative influence on corporate sales?

• A)0.05
• B)0.2743
• C)0.5485
• D)0.7258

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Definitions:

Type A Behavior Pattern

A cluster of characteristics—including being excessively competitive, hard-driven, impatient, and hostile—that is related to a higher incidence of heart disease.

Type B Behavior Pattern

A cluster of characteristics—including being relaxed and easygoing—that is related to a lower incidence of heart disease.

Heart Disease

A range of conditions affecting the heart, including coronary artery disease, heart rhythm problems, and heart defects.

Type A Behavior Pattern

A personality type characterized by high stress levels, impatience, aggressiveness, and a sense of urgency.