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

question 346

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, what are the predicted sales (in millions of dollars) for a company spending $100 million on capital and $100 million on wages?

• A) 15,800.00
• B) 16,520.07
• C) 17,277.49
• D) 20,455.98

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Definitions:

Financial Analysis

The evaluation of a business's financial statements to understand its performance, trends, and financial health.

Consolidated Statements

Financial reports that aggregate the financial position and operations of a parent company and its subsidiaries as one single entity.

Operating Loss

A financial situation where a company's operating expenses exceed its gross profits.

Discontinued Operations

Components of a business—such as segments or subsidiaries—that have been disposed of or are held for sale, and are reported separately in financial statements for clearer assessment by investors.