A Microeconomist Wants to Determine How Corporate Sales Are Influenced

question 54

Multiple Choice

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.A statistical analyst discovers that capital spending by corporations has a significant inverse relationship with wage spending.What should the microeconomist who developed this multiple regression model be particularly concerned with?

• A)Randomness of error terms
• B)Collinearity
• C)Normality of residuals
• D)Missing observations

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Definitions:

Emotional Stability

A personality trait characterized by the consistency of one's emotions and a low tendency toward emotional fluctuations.

Emotionally Meaningful

Pertains to experiences or events that hold significant emotional importance to an individual, deeply influencing feelings and behavior.

Old Age

A period in the human lifespan characterized by advanced chronological age, often associated with physical, cognitive, and social changes.

Desire to Change

A motivational state that drives individuals to alter aspects of their life or behavior in pursuit of personal improvement or satisfaction.