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

question 314

Multiple Choice

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, one company in the sample had sales of $20 billion (Sales = 20,000) . 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) 874.55
• B) 622.87
• C) -790.69
• D) -983.56

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Definitions:

Self-Interest

A principle that suggests individuals prioritize their own welfare and benefits in decision-making processes.

Pursuit of Power

The ongoing effort to acquire influence, control, or authority over others, often seen in political, economic, and social contexts.

Verstehen

Weber’s term for a deep understanding and interpretation of subjective social meanings.

AGIL Typology

A theoretical framework proposed by Talcott Parsons that classifies systems’ functions into four categories: Adaptation, Goal attainment, Integration, and Latency.