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

question 109

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, 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%

---

Definitions:

Social Persona

The public identity an individual projects in social environments, including social media, shaped by their communications, behavior, and choices.

Activation Tool

A strategy or device used to engage consumers, often encouraging interaction or participation with a brand or campaign.

Social Persona

A constructed identity or role that an individual presents in social contexts or online platforms, often curated to fit into certain social norms or expectations.

Humanizing

The process of making technology, brands, or products relate more closely to human emotions, characteristics, or experiences.