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:

Moral Philosophies

The study of questions about morality, including the goodness or badness of actions, the nature of virtue, and the foundations of ethical principles.

Foreign Corrupt Practices Act

A United States law aimed at preventing U.S. companies and their agents from engaging in corrupt practices abroad by making it illegal to bribe foreign officials.

Bribery of Officials

The act of giving or receiving something of value to influence the actions of an official in their professional duties.

Consumerism

The protection or promotion of the interests of consumers; the preoccupation with and inclination towards the buying of consumer goods.