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

question 4

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. $SCENARIO 14-5 A microeconomist wants to determine how corporate sales are influenced by capital and wage spending by companies.She proceeds to randomly select 26 large corporations and record information in millions of dollars.The Microsoft Excel output below shows results of this multiple regression. Introduction to Multiple Regression 14-17 -Referring to Scenario 14-5, what fraction of the variability in sales is explained by spending on Capital and wages? A) 27.0% B) 50.9% C) 68.9% D) 83.0%$
Introduction to Multiple Regression 14-17
-Referring to Scenario 14-5, what fraction of the variability in sales is explained by spending on
Capital and wages?

Definitions:

Operating Cash Flow

The cash that a company generates from the revenues it brings in, excluding costs associated with long-term investment on capital items or investment in securities.

CCA Class

A categorization under Canadian tax law that groups depreciable assets affecting the rate at which businesses can claim capital cost allowance for tax purposes.

Tourism Revenue

The income generated from tourists, including spending on accommodations, food, transport, and entertainment in the destination.