Answer (Choose 1 answer)
(See picture)
Α. 27.0%
Β. 50.9%
C. 68.9%
D. 83.0%
FUO
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 OUTPUT
Regression Statistics
Multiple R
0.83
R Square
0.689
Adjusted R Square
0.662
Standard Error
17501.64
Observations
26
ANOVA
df
SS
MS
F
Regression
Residual
2 1.56E+10
7.79E+09
25.432
Total
23 7.05E+09
3.06E+08
25 2.26E+10
Coeff StdError t Stat
P-value 0.0154
Intercept Capital
15800
6038.3
2.617
0.1245 0.2045
0.609 0.5485
Wages
7.0762 1.4729 4.804 0.0001
Signif F
0.0001
What fraction of the variability in sales is explained by spending on capital and wages?
50
