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:

Industrialization

denotes the process of transforming economies from primarily agricultural to predominantly manufacturing and industrial in nature.

Primary Forces

Fundamental or principal forces driving changes or developments in various fields, such as technology, society, or economics.

Development of Cities

The process by which towns and cities are formed and become larger as more and more people begin living and working in central areas.

Demography

The statistical study of human populations, including their size, growth, density, distribution, and vital statistics.