Kizspy | Question: 65
(Choose 1 answer)
(See picture)
Α. 60.1%
Β. 31.1%
C. 22.9%
D. 8.8%
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
R Square
Adjusted R Square
Standard Error
Observations
ANOVA
Regression
Residual
Total
0.83
0.689
0.662
17501.64
26
df
SS
MS
F
2 1.56E\div10 7.79E+0S 25.432 3.06E\div08
23 7.05E+09
25 2.26E+10
Coeff StdError t Stat
15800
6038.3
0.1245 0.2045
P-value
2.617 0.0154
0.609 0.5485
7.0762 1.4729 4.804 0.0001
Signif F
0.0001
Intercept
Capital
Wages
When the microeconomist used a simple linear regression model with sales as the dependent variable and wages as the independent variable, she obtained an r^{2} value of 0.601. What additional percentage of the total variation of sales has been explained by including capital spending in the multiple regression?
