Economics Help: Please see attached. Screenshot 1 is the context and screenshot 2 is the drop downs. I just need the answer to the drop downs please A researcher is investigating the determinants of firm labour productivity using data for the year 2014 for asample of manufacturing firms from the electronics industry. She uses the following model:LP = bo + b₁ x CAPIN - b₂ x W + b3 x SIZE + b₂ x RDwhere:LP is the firm's labour productivity (measured as turnover per employee, in €000s);CAPIN is the firm's capital intensity (measured as total assets per employee, in €000s);W is the firm's average wage per employee, in €000s;SIZE is an indicator of the size of the firm (measured by the log of its turnover, in €000s);RD is the firm's R&D intensity (measured as the firm's R&D expenditure divided by its turnover), an indicatorof how innovative the firm is.The results of the estimation are:VariablesCAPINWSIZERDConstantCoefficients0.3641.3333.237-21.98219.039StandardErrors0.0140.4285.82211.86761.513Note: The researcher is using a 5% significance level.t-values25.9903.1100.560-1.8500.310p-values0.0000.0020.5790.0660.757 a) the variable CAPINb) the variable RDis notisof the p-value of the CAPIN variable isthe RD variable isis notisassociated with the firm's productivity because the magnitudehigherlowerhigherlowerthan the significance level;associated with the firm's productivity because the p-value ofthan the significance level.

To check whether an explanatory variable is significant in the model, we follow the following rule :…

a) the variable CAPIN b) the variable RD is not of the p-value of the CAPIN variable is the RD variable is is not associated with the firm's productivity because the magnitude higher lower higher lower than the significance level; associated with the firm's productivity because the p-value of than the significance level.

a) the variable CAPIN b) the variable RD is not of the p-value of the CAPIN variable is the RD variable is is not associated with the firm's productivity because the magnitude higher lower higher lower than the significance level; associated with the firm's productivity because the p-value of than the significance level.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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