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Instruction 13 ANOVA Note: Adj R Square = Adjusted R Square; Std

question 153

Multiple Choice

Instruction 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.
OUTPUT
SUMMARY
$\begin{array} { l l } \text { Regression Statistics } & \\ \text { Multiple R } & 0.830 \\ \text { R Square } & 0.689 \\ \text { Adj. R Square } & 0.662 \\ \text { Std. Error } & 17501.643 \\ \text { Observations } & 26 \end{array}$

ANOVA
$\begin{array}{llllll} & d f& SS &{ MS } & F & \text{Signif F} \\\text{Regression} & 2 & 15579777040&7789888520 & 25.432 & 0.0001 \\\text{Residual }& 23 & 7045072780&306307512 & & \\\text{Total }& 25 & 22624849820 & &\end{array}$

$\begin{array}{lllll} & \text { Coeff } & \text { StdError } & \text { t Stat } & p \text {-value } \\\text { Intercept } & 15800.0000 & 6038.2999 & 2.617 & 0.0154 \\\text { Capital } & 0.1245 & 0.2045 & 0.609 & 0.5485 \\\text { Wages } & 7.0762 & 1.4729 & 4.804 & 0.0001\end{array}$ Note: Adj. R Square = Adjusted R Square; Std. Error = Standard Error
-Referring to Instruction 13.5,what are the predicted sales (in millions of dollars) for a company spending $500 million on capital and $200 million on wages?

Definitions:

Fiscal Burdens

The financial obligations, such as taxes and debt payments, that a government must bear.

Skills-based Immigration

This is a type of immigration policy that prioritizes the entry of individuals into a country based on their job skills, professional experience, and the ability to contribute to the labor market.

Local Economy

The economic system and activities that are confined to a specific geographic area or community.

Legal Immigration

The process by which individuals enter and reside in a country in accordance with the legal and regulatory standards of that country.