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Instruction 13-5
a Microeconomist Wants to Determine How Corporate Sales R\mathrm { R }

Question 94

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.
SUMMARY
Regression Statistics
\begin{tabular} { l r } Multiple R\mathrm { R } & 0.8300.830 \\ \hline Square & 0.6890.689 \end{tabular}
R Square 0.689\quad 0.689
Adj. R Square 0.662\quad 0.662
Std. Error 17501.643\quad 17501.643
Observations 26
ANOVA
df SS  MS F Siguif F Regression 215579777040778988852025.4320.0001 Residual 237045072780306307512 Total 2522624849820\begin{array} { l l l l l l } & \boldsymbol { d f } & \text { SS } & \text { MS } & \boldsymbol { F } & \text { Siguif } \boldsymbol { F } \\ \text { Regression } & 2 & 15579777040 & 7789888520 & 25.432 & 0.0001 \\ \text { Residual } & 23 & 7045072780 & 306307512 & & \\ \text { Total } & 25 & 22624849820 & & & \end{array}
 Coeff  StdError t Stat P-value  Intercept 15800.00006038.29992.6170.0154 Capital 0.12450.20450.6090.5485 Wages 7.07621.47294.8040.0001\begin{array} { l l l l l } & \text { Coeff } & \text { StdError } & \boldsymbol { t } \text { Stat } & \boldsymbol { 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,which of the following values for ? is the smallest for which the regression model as a whole is significant?


A) 0.001
B) 0.01
C) 0.05
D) 0.00005

Correct Answer:

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