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.
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
Related questions
Question
J 7...
plz help ke answer this
Transcribed Image Text:1. The following equation was obtained by Ordinary Least Squares (OLS):
rdintens 3.3+ 0.0030sales -0.000078sales²
(0.12) (0.0019)
(0.000048)
n=63, R² -0.1534, (standard errors are in parenthesis)
where rdintens 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.
Page 2 of 30
Next Page
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Recommended textbooks for you
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning
Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning
Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
Elementary Statistics: Picturing the World (7th E…
Statistics
ISBN:
9780134683416
Author:
Ron Larson, Betsy Farber
Publisher:
PEARSON
The Basic Practice of Statistics
Statistics
ISBN:
9781319042578
Author:
David S. Moore, William I. Notz, Michael A. Fligner
Publisher:
W. H. Freeman
Introduction to the Practice of Statistics
Statistics
ISBN:
9781319013387
Author:
David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:
W. H. Freeman