Instruction 13.31 A Microeconomist Wants to Determine How Corporate Sales Are Influenced

question 157

Multiple Choice

Instruction 13.31
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.
Note: Adj. R Square = Adjusted R Square; Std. Error = Standard Error
-Referring to Instruction 13.31,which of the independent variables in the model are significant at the 5% level?

• A) Capital, Wages.
• B) Wages.
• C) Capital.
• D) None of the above.

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Definitions:

Interest Rate

The amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of assets.

Amortization

The gradual reduction of a debt or the spreading out of capital expenses for intangible assets over a specific period of time.

Bond Payable

A bond payable is a long-term liability where a borrower agrees to pay back a fixed amount of funds at a future date, along with periodic interest payments.

Interest Expense

The cost incurred by an entity for borrowed funds, represented as interest payments on debts such as loans, bonds, or lines of credit.