Question: An economist wants to determine how corporate sales are influenced by capital and wage spending by companies. She proceeds to randomly select 26 large corporations and record information in millions of dollars. The Microsoft Excel output below shows the results of this multiple regression.

SUMMARY OUTPUT

Regression Statistics

Multiple R 0.830

R Square 0.689

Adjusted R Square 0.662

Standard Error 17501.643

Observations 26

ANOVA df SS MS F Signif F

Regression 2 15579777040 7789888520 25.432 0.0001

Residual 23 7045072780 306307512

Total 25 22624849820

Coeff. StdError t Stat p-value

Intercept 15800.0000 6038.2999 2.617 0.0154

Capital 0.1245 0.2045 0.609 0.5485

Wages 7.0762 1.4729 4.804 0.0001

(a) State the multiple regression equation.

(b) Interpret the meaning of the slopes b₁ and b₂ for this problem.

(c) Interpret the meaning of Y-intercept b₀ for this problem.

(d) What are the predicted sales (in millions of dollars) for a company spending $120 million on capital and $110 million on wages?

(e) Determine the coefficient of multiple determination and interpret its meaning for this problem.

(f) Determine the adjusted \(r_{adj}^{2}\).