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

question 193

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,at the 0.01 level of significance,what conclusion should the microeconomist draw regarding the inclusion of Capital in the regression model?

• A) 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.
• B) 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.
• C) Capital is significant in explaining corporate sales and should be included in the model because its p-value is more than 0.01.
• D) Capital is significant in explaining corporate sales and should be included in the model because its p-value is less than 0.01.

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Definitions:

Hypothalamus

A small region of the brain responsible for regulating physiological processes such as temperature regulation, hunger, thirst, and sleep cycles.

Hormones

Biochemical substances produced by glands in the endocrine system that regulate physiological activities by traveling through the bloodstream to target organs.

Nervous System

The complex network of nerves and cells that transmit signals between different parts of the body, allowing for communication and coordination of bodily functions.

Bloodstream

The flowing body fluid that circulates throughout the body, carrying oxygen and nutrients to cells and removing waste products.