3. The variable rdintens is the expenditure on research and development(R&D) as a percentage of sales. Salary is measured in millions ofdollars. The variable profmarg is profit as a percentage of sales. Let'ssuppose the equation below is estimated.Which statement is true?rdintens = 472 + .321log(sales) + .050profmarg(1.369) (216)(.046)o profmarg has a statistically significant effect on rdintens at 5% levelo profmarg has a statistically significant effect on rdintens at 10% levelo profmarg has a statistically insignificant effect on rdintenso profmarg has a statistically significant effect on rdintens at 1% level

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o profmarg has a statistically insignificant effect on rdintens

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ISBN:9780190931919

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Chapter1: Making Economics Decisions

Section: Chapter Questions

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Question

3. The variable rdintens is the expenditure on research and development
(R&D) as a percentage of sales. Salary is measured in millions of
dollars. The variable profmarg is profit as a percentage of sales. Let's
suppose the equation below is estimated.
Which statement is true?
rdintens = 472 + .321log(sales) + .050profmarg
(1.369) (216)
(.046)
o profmarg has a statistically significant effect on rdintens at 5% level
o profmarg has a statistically significant effect on rdintens at 10% level
o profmarg has a statistically insignificant effect on rdintens
o profmarg has a statistically significant effect on rdintens at 1% level

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