A microeconomist wants to determine how corporate sales are influenced by capita

Question

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 technology output in the accompanying table shows results of this multiple regression. 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?

Explanation / Answer

r^2 = 0.601.

60.1% of the total variation of sales has been explained by including capital spending in the multiple regression.

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.