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

question 53

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 are the predicted sales (in millions of dollars) for a company spending $500 million on capital and $200 million on wages?

• A) 15,800.00
• B) 16,520.07
• C) 17,277.49
• D) 20,455.98

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Definitions:

Maximum Return

The highest possible profit or yield that an investment or action can generate.

"As is" Basis

A term used to indicate that an item is being sold in its current state, with any existing faults or conditions, and without warranty.

Production Planning

The process of organizing and controlling all aspects of the production process, from sourcing raw materials to scheduling workforce and machinery.

Forecasts

Predictions or estimates of future events or trends, particularly regarding weather or economic conditions.