TABLE 13-5 A Microeconomist Wants to Determine How Corporate Sales Are Influenced

question 18

Multiple Choice

TABLE 13-5
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 13-5, 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:

New Home

A new home refers to a residential property that has recently been constructed and has never been lived in before.

Need Awareness

The initial stage in the purchasing process where a customer becomes conscious of a problem or need that requires a solution.

Easiest People

Individuals who are perceived as more compliant or agreeable in a given situation, especially in contexts like sales or negotiations.

Sell

The act of exchanging a product or service for monetary value, aiming to satisfy customer needs while achieving business revenue objectives.