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

question 20

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, at the 0.01 level of significance, what conclusion should the microeconomist reach regarding the inclusion of Capital in the regression model?

• A) Capital is significant in explaining corporate sales and should be included in the model because its p-value is less than 0.01.
• B) Capital is significant in explaining corporate sales and should be included in the model because its p-value is more than 0.01.
• C) Capital is not significant in explaining corporate sales and should not be included in the model because its p-value is less than 0.01.
• D) Capital is not significant in explaining corporate sales and should not be included in the model because its p-value is more than 0.01.

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Definitions:

Urgent Social Need

Critical and immediate requirements within a society that necessitate collective action or policy intervention.

Technology Advances

The process of developing and implementing new tools, systems, or methods of doing things that improve efficiency, effectiveness, or capabilities.

Greenhouse Effect

The warming of Earth's surface and atmosphere caused by the trapping of the sun's heat by greenhouse gases, such as carbon dioxide and methane.