Instruction 13.17
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.
Note: Adj. R Square = Adjusted R Square; Std. Error = Standard Error
-Referring to Instruction 13.17,what fraction of the variability in sales is explained by spending on capital and wages?
A) 68.9%
B) 27.0%
C) 50.9%
D) 83.0%

Question

Instruction 13.17
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.
  Note: Adj. R Square = Adjusted R Square; Std. Error = Standard Error
-Referring to Instruction 13.17,what fraction of the variability in sales is explained by spending on capital and wages?
A) 68.9% 
B) 27.0% 
C) 50.9% 
D) 83.0%

Quizplus · Accepted Answer

The fraction of the variability in sales explained by spending on capital and wages is represented by the coefficient of determination (R^2), which in this context is 68.9%.

Instruction 13.17 A Microeconomist Wants to Determine How Corporate Sales Are Influenced