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?

• A) 17,277.49
• B) 15,800.00
• C) 16,520.07
• D) 20,455.98

---

Definitions:

Endometriosis

A painful, chronic condition where tissue similar to the lining inside of the uterus grows outside the uterus, leading to pain and infertility.

Menarche

The occurrence of the first menstrual cycle in adolescent females, a key event in female puberty.

Ortho Evra

A type of birth control patch applied to the skin that releases hormones to prevent pregnancy.

Brevicon

A type of combined oral contraceptive pill that contains low doses of synthetic estrogen and progestin.