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

question 109

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TABLE 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. TABLE 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.   -Referring to Table 14-5, when the microeconomist used a simple linear regression model with sales as the dependent variable and wages as the independent variable, she obtained an r² value of 0.601. What additional percentage of the total variation of sales has been explained by including capital spending in the multiple regression? A)  60.1% B)  31.1% C)  22.9% D)  8.8%
-Referring to Table 14-5, when the microeconomist used a simple linear regression model with sales as the dependent variable and wages as the independent variable, she obtained an r² value of 0.601. What additional percentage of the total variation of sales has been explained by including capital spending in the multiple regression?


Definitions:

Midpoint

Refers to the exact middle point in a range of values, often calculated as the average of two extreme values in a set.

Sum

The result of adding a set of numbers or quantities together.

Mean Value

A statistical measure that determines the central tendency of a dataset by summing all values and dividing by the count of values, reflecting the dataset's average.

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