3) We have the following regression model explaining the behavior of R&D expenditures in 18 sectors of the economy using sales and profits as independent factors: R&D, = -139.392 +0.012 ales), + 0.239 (Profits) The following auxiliary regression was estimated: Residuals? = 695.19 + 1349.7(Sales) -19656.9 (Profits) - 0.0027*Sales? 0.1163 Profits? + 0.0501 Sales*Profits R? = 0.889 Test for heteroscedasticity at 1% significance level.

A First Course in Probability (10th Edition)
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ISBN:9780134753119
Author:Sheldon Ross
Publisher:Sheldon Ross
Chapter1: Combinatorial Analysis
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3) We have the following regression model explaining the behavior of R&D
expenditures in 18 sectors of the economy using sales and profits as independent
factors:
R&D, = -139.392 + 0.012 šales), +0.239 (Profits).
The following auxiliary regression was estimated:
Residuals? = 695.19 + 1349.7(Sales) -19656.9 (Profits)- 0.0027*Sales? -
0.1163 Profits? + 0.0501 Sales*Profits
R? = 0.889
Test for heteroscedasticity at 1% significance level.
Transcribed Image Text:3) We have the following regression model explaining the behavior of R&D expenditures in 18 sectors of the economy using sales and profits as independent factors: R&D, = -139.392 + 0.012 šales), +0.239 (Profits). The following auxiliary regression was estimated: Residuals? = 695.19 + 1349.7(Sales) -19656.9 (Profits)- 0.0027*Sales? - 0.1163 Profits? + 0.0501 Sales*Profits R? = 0.889 Test for heteroscedasticity at 1% significance level.
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