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:

Corporate Headquarters

The main office or central administration location of a corporation where key managerial decisions are made.

Personnel Budget

Financial planning for the costs associated with staff, including salaries, benefits, training, and other employee-related expenses.

Task Interdependency

The degree to which tasks within an organization or project require collaboration and coordination among different individuals or teams.

Perceived Goal Incompatibility

Occurs when individuals or groups believe that their goals conflict with those of others, potentially leading to competition or conflict.