SCENARIO 14-5 A Microeconomist Wants to Determine How Corporate Sales Are Influenced

question 2

Multiple Choice

SCENARIO 14-5
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.
Introduction to Multiple Regression 14-17
-Referring to Scenario 14-5, 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

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Definitions:

Longitudinal Research

A research design in which the same subjects are observed for an extended period of time to detect any changes that may occur.

Stability Of Behavior

Refers to the consistency of individual behaviors over time and across situations, emphasizing the enduring nature of personality and actions.

Practical

Pertaining to or concerned with the actual doing or use of something rather than with theory and ideas.

Longitudinal

A type of research study in which data is gathered from the same subjects repeatedly over a period of time.