A Regression Model Involving 3 Independent Variables for a Sample

question 65

Essay

A regression model involving 3 independent variables for a sample of 20 periods resulted in the following sum of squares.

a.Compute the coefficient of determination and fully explain its meaning.
b.At  = 0.05 level of significance, test to determine whether or not there is a significant relationship between the independent variables and the dependent variable.

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Definitions:

Multinational Firm

A company that conducts business and has facilities and other assets in at least one country other than its home country.

Transnational Firm

A company that operates across national borders, managing production or service facilities in more than one country.

International Firm

A business that engages in commercial transactions across national borders.

Loss-Leader Pricing

Deliberately selling a product below its customary price, not to increase sales, but to attract customers’ attention to it in hopes that they will buy other products with large markups as well.