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

question 38

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, the observed value of the F-statistic is given on the printout as 25.432. What are the degrees of freedom for this F-statistic?

• A) 25 for the numerator, 2 for the denominator
• B) 2 for the numerator, 23 for the denominator
• C) 23 for the numerator, 25 for the denominator
• D) 2 for the numerator, 25 for the denominator

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Definitions:

Simple Random Sample

A simple random sample of size n from a finite population of size N is a sample selected such that each possible sample of size n has the same probability of being selected.

Probability

An indicator of the probability that a particular event will take place, represented by a numerical value ranging from 0 to 1, with 0 meaning the event cannot happen and 1 meaning the event is certain to happen.

Population

Every individual or item under consideration in a statistical evaluation.

Probability Distribution

A mathematical function that provides the probabilities of occurrence of different possible outcomes in an experiment.