1. The following equation was obtained by Ordinary Least Squares (OLS): rdintens-3.3+ 0.0030sales -0.000078sales (0.12) (0.0019) (0.000048) n-63, R² -0.1534, (standard errors are in parenthesis) where dintens is R&D expenditure of a company as a percent of fales and saler is the sales of products measured in millions of pounds. Which of the following is TRUE? sales should not be included given 5% significance level. If sales increases by a million, the ratio of R&D expenditure to sales will increase by 0.003% If sales increases by a million, the ratio of R&D expenditure to sales will increase by 0.3%. If the variable of sales is measured in billions, it will change the estimated standard errors but not the parameters.

1. The following equation was obtained by Ordinary Least Squares (OLS): rdintens-3.3+ 0.0030sales -0.000078sales (0.12) (0.0019) (0.000048) n-63, R² -0.1534, (standard errors are in parenthesis) where dintens is R&D expenditure of a company as a percent of fales and saler is the sales of products measured in millions of pounds. Which of the following is TRUE? sales should not be included given 5% significance level. If sales increases by a million, the ratio of R&D expenditure to sales will increase by 0.003% If sales increases by a million, the ratio of R&D expenditure to sales will increase by 0.3%. If the variable of sales is measured in billions, it will change the estimated standard errors but not the parameters.

Algebra & Trigonometry with Analytic Geometry

13th Edition

ISBN:9781133382119

Author:Swokowski

Publisher:Swokowski

Chapter3: Functions And Graphs

Section3.3: Lines

Problem 76E

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