A Microeconomist Wants to Determine How Corporate Sales Are Influenced

question 14

Multiple Choice

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.A statistical analyst discovers that capital spending by
Corporations has a significant inverse relationship with wage spending.What should the
Microeconomist who developed this multiple regression model be particularly concerned with?

• A) Randomness of error terms
• B) Collinearity
• C) Normality of residuals
• D) Missing observations

---

Definitions:

Phoenix, Arizona

Phoenix, Arizona, is the capital city of the U.S. state of Arizona and is known for its hot desert climate, vibrant nightlife, and rich cultural history.

Livable

A characteristic of an environment or city that makes it suitable for living, considering factors like safety, affordability, employment opportunities, and quality of life.

U.S. Armed Forces

The military forces of the United States, consisting of the Army, Navy, Marine Corps, Air Force, and Coast Guard, responsible for defending the country against external threats and providing aid during national emergencies.

1945

The year 1945 marked the end of World War II, following the unconditional surrender of Nazi Germany in May and culminating with the surrender of Japan in September.