Exhibit 14-7

question 99

Multiple Choice

Exhibit 14-7.Assume you ran a multiple regression to gain a better understanding of the relationship between lumber sales,housing starts,and commercial construction.The regression uses lumber sales (in $100,000s) as the response variable with housing starts (in 1000s) and commercial construction (in 1000s) as the explanatory variables.The results of the regression are: Refer to Exhibit 14-7.The explanatory variables (housing starts and commercial construction) together explained approximately _____% of the variations in the response variable (lumber sales) .

• A)18
• B)22
• C)78
• D)82

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Definitions:

Asset Utilization

A measure of how efficiently a company uses its assets to generate revenue.

Assets

A firm’s economic resources, or items of value that it owns, such as cash, inventory, land, equipment, buildings, and other tangible and intangible things.