TABLE 14-5
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.
-Referring to Table 14-5, what are the predicted sales (in millions of dollars) for a company spending $500 million on capital and $200 million on wages?
A) 15,800.00
B) 16,520.07
C) 17,277.49
D) 20,455.98

Question

TABLE 14-5
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. 
-Referring to Table 14-5, what are the predicted sales (in millions of dollars) for a company spending $500 million on capital and $200 million on wages?
A) 15,800.00 
B) 16,520.07 
C) 17,277.49 
D) 20,455.98

Quizplus · Accepted Answer

The predicted sales are calculated using the regression equation provided in Table 14-5, which likely includes coefficients for capital and wages. By substituting $500 million for capital and $200 million for wages into this equation, the result is $17,277.49 million.

TABLE 14-5 A Microeconomist Wants to Determine How Corporate Sales Are Influenced