A Microeconomist Wants to Determine How Corporate Sales Are Influenced

question 34

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 records 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) Normality of residual
• B) Randomness of error terms
• C) Missing observations
• D) Collinearity

---

Definitions:

Separator Pads

Components used in machinery or devices to divide or separate items or parts for processing, organization, or safety reasons.

Pickup Rollers

Rubber or synthetic rollers within a printer or scanner that are responsible for grabbing and feeding paper into the device.

Blu-ray

A type of optical disc technology that uses a blue laser instead of a red laser (like the kind used in CD/DVD drives) to achieve higher disc capacities.

IMEI

International Mobile Equipment Identity, a unique code used to identify mobile phones and certain other devices.