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

question 205

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, the observed value of the F-statistic is given on the printout as25.432.What are the degrees of freedom for this F-statistic?

• A)25 for the numerator, 2 for the denominator
• B)2 for the numerator, 23 for the denominator
• C)23 for the numerator, 25 for the denominator
• D)2 for the numerator, 25 for the denominator

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Korean War

The Korean War was a conflict between North Korea, aided by China and the Soviet Union, and South Korea, supported by United Nations forces primarily from the United States, lasting from 1950 to 1953.

Communist Forces

Political groups or military units that adhere to communist ideologies, often involved in revolutionary activities or governance in various countries.

Greek Civil War

A conflict from 1946 to 1949 in Greece, fought between the Communist-led Democratic Army of Greece and the Greek government army, backed by the UK and USA.

Korean War

A conflict between North Korea, with the support of China and the Soviet Union, and South Korea, supported by the United Nations primarily the United States, from 1950 to 1953.