Question: 50
(Choose 1 answer)
(See picture)
A. 60.1%
B. 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
0.83
R Square
Adjusted R Square
0.689
0.662
Standard Error
17501.64
Observations
26
ANOVA
df
SS
Regression
Residual
Total
Intercept
Capital
Wages
MS
F
2 1.56E+10 7.79E+09 25.432
23 7.05E+09 3.06E+08
25 2.26E+10
Coeff StdError
15800 6038.3
0.1245 0.2045
7.0762 1.4729
t Stat
P-value
2.617 0.0154
0.609 0.5485
4.804 0.0001
Signif F
0.0001
When the microeconomist used a simple linear regression model
with sales as the dependent variable and wages as the independent
variable, she obtained an 12 value of 0.601. What additional
percentage of the total variation of sales has been explained by
including capital spending in the multiple regression?
