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Question 4 Not yet answered Marked out of 1.00 P Flag question A researcher is investigating the impact of a firm's capital intensity on its labour productivity using data for the year 2014 for a sample of manufacturing firms from Germany, France, Sweden, Italy and the UK. She has estimated the following model: LP = 190 + 0.3 * CAPIN - 31.8 * FR + 65.4 * SE + 15.8 UK - 25.1 x IT where: LP is the firm's labour productivity (measured as turnover per employee, in €000s per employee); CAPIN is the firm's capital intensity (measured as total assets per employee, in €000s per employee); FR is a dummy variable that takes the value 1 if the firm is French and otherwise; SE is a dummy variable that takes the value 1 if the firm is Swedish and 0 otherwise; UK is a dummy variable that takes the value 1 if the firm is British and 0 otherwise; IT is a dummy variable that takes the value 1 if the firm is Italian and 0 otherwise. Enter in the box below the predicted value of labour productivity for a British firm with a capital intensity of € 250 000 (CAPIN=250): Answer: