An Economist Examines the Relationship Between the Number of Patent

question 5

Essay

An economist examines the relationship between the number of patent applications filed and expenditures in research and development (R&D)for the 50 states and the District of Columbia.She believes that if a state spends more on research and development,then more patents will be filed.She estimates the following model: ,
where Patents is the number of patent applications filed and R&D is the state's expenditures on research and development (in $1,000,000s).Data was obtained from the 2012 Statistical Abstract of the United States for the year 2007.The regression results are shown in the accompanying table. a.Predict the number of patents filed for a state that spends $5,000,000 on R&D.
B)Interpret the coefficient attached to R&D.
C)Calculate the standard error of the estimate.
D)Interpret the coefficient of determination.

Distinguish between final and intermediate goods in the context of GDP calculation.

Comprehend the relationship between an economy's income and expenditure.

Identify what is included and excluded in the computation of GDP.

Understand the significance of macroeconomic statistics beyond GDP.

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Definitions:

Broad Variety

A wide range of products or services offered by a business to cater to the diverse preferences of its customers.

Limited Services

Refers to businesses that offer a restricted range of services, often to maintain efficiency and reduce costs.

Extreme-value Retailers

Retail stores that offer a wide variety of merchandise, typically with low prices, targeting consumers looking for extreme deals.

Limited Assortments

Retailing strategy where a store offers a small number of products in order to focus on a specific category and reduce costs.