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

question 175

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, what is the p-value for testing whether Capital has a positive influence on corporate sales?

• A) 0.025
• B) 0.05
• C) 0.2743
• D) 0.5485

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Definitions:

Rate of Return

The financial improvement or decline in an investment across a particular period, indicated as a percentage of the investment’s entry cost.

Interest

The fee associated with the right to borrow funds, usually indicated as a yearly percentage rate.

Compounded Annually

This refers to the process of calculating interest on both the initial principal and the accumulated interest from previous periods on a yearly basis.

Retire

To withdraw from one's position or occupation; to conclude one's working or professional career.