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

question 207

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, one company in the sample had sales of $21.439 billion (Sales = 21,439) . This company spent $300 million on capital and $700 million on wages. What is the residual (in millions of dollars) for this data point?

• A) 790.69
• B) 648.31
• C) -648.31
• D) -790.69

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Definitions:

Indenture Agreement

A formal contract between a bond issuer and a bondholder that specifies the terms of the bond.

Call Provision

A feature of a bond that allows the issuer to repay the bond before its maturity date.

Debenture Agreement

A legal document that specifies the terms of a bond issue, promising repayment of borrowed money plus interest at fixed intervals.

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