Complete the ANOVA table

Amicro eeonomistwantstodeterminehowoorporate salls areinﬂueneedby capitalandwage. She colleetthedata

and produced the following regression output (Table 1) Reression Ana is —

—E—_

—El—_

—Std. Emor —1?501.64 De_ Var. m

—— ANOVA table ——_ Source - verve

Residual ——_ Total 22624849820 25

Regression out ut variables coeﬁ'rcients std. error t[’df=28) pvalue

Intercept 15800 60382999 2.61? .0154 Capital 0.1245 0-2045 0-609 0.5485 Wages 7.0762 1.4729 4-804 0.0001 — Explain tb‘meaniug of gin coefﬁcient, do their signs conform the economic theory? — What fraction of the variability in sales is explained by spending on capital and wages? — Which of the independent variables in the model are individually signiﬁcant at the 5% level? — At the 0.01 level of signiﬁcance, what conclusion should the micro economist draw regarding the inclusion of

Capital in the regression model? — When the micro economist used a simple linear regression model with sales as the dependent variable and wages

as the independent variable, he obtained anR—square value of0-601. What additional percentage ofthe total

variation of sales has been explained by including capital spending in the multiple regression? — If X1 is capital andXZ is wages, the least squares multiple regression equation for this problem is (Y is sales)

—‘What is the predicted sales (in millions of dollars) for a company spending $100 million on capital and $100

million on wages?