An economist examines the relationship between the number of patent applications filed and expenditures in research and development (R&D) for the 50 states and the District of Columbia. She believes that if a state spends more on research and development, then more patents will be filed. She estimates the following model:

Patents = ?₀+ ?1 R&D + ?

WherePatentsis the number of patent applications filed, andR&Dis the state's expenditures on research and development (in $1,000,000s). The regression results are shown in the accompanying table.

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