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

question 228

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, one company in the sample had sales of $21.439 billion (Sales =21,439) .This company spent $300 million on capital and $700 million on wages.What is the residual (in millions of dollars) for this data point?

• A)790.69
• B)648.31
• C)-648.31
• D)-790.69

---

Definitions:

Advanced Find

A search feature that offers extensive filtering and search criteria options to locate specific data or records within a software application.

Broaden

To expand or widen in scope, range, or extent.

Voting Buttons

Features in email and communication applications that allow recipients to cast a vote in response to a query directly within the message.

Sending

The process of transmitting data, messages, or documents from one digital device or application to another.