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

question 48

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, which of the following values for α is the smallest for which the regression model as a whole is significant?

• A) 0.00005
• B) 0.001
• C) 0.01
• D) 0.05

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Definitions:

Par Value

The nominal or face value of a stock or bond, as stated by the issuing corporation.

Large Stock Dividend

A distribution of a substantial number of shares to a company's shareholders, often used to conserve cash while still rewarding investors.

Market Value

Market value is the current price at which an asset or service can be bought or sold in the market.

Stock Split

A corporate action that increases the number of a corporation's outstanding shares by dividing each share, which in turn reduces the price per share.