(LO 7-3) Download the “R&D Expenditures and Revenues” dataset from Connect into your preferred software tool. Assess the relationship between R&D Expenditures and Revenue by performing a regression. (Hint: Completion of Lab 7-9 may be helpful before completing this lab).

Required:

1. Perform a regression with R&D Expenditures as the independent variable (or x) and Revenues as the dependent variable. Take a screenshot of the regression output.

2. The adjusted R squared is a statistic used to measure how good the model did at predicting the dependent variable of completion rates. How well did R&D expenditures do at predicting revenues if adjusted R-squared value of 0 represents no ability of the model to explain the dependent variable and an adjusted R-squared value of 1 represents perfect ability of the model to explain the dependent variable?

3. Does the p-value associated with the coefficient on R&D expenditures suggest a statistically significant relationship between R&D expenditures and revenues?

4. Given these regression results, for every dollar invested in R&D expenditures, what is the expected dollar increase in revenues?