Loose Leaf for Statistical Techniques in Business and Economics
17th Edition
ISBN: 9781260152647
Author: Douglas A. Lind
Publisher: McGraw-Hill Education
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Chapter 14, Problem 31CE
a.
To determine
Perform a global test of hypothesis to verify if any of the regression coefficients are different from zero.
b.
To determine
Perform individual test for each of the variables.
Explain whether any of the variables can be deleted.
c.
To determine
Revise the regression equation.
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a. Develop an estimated regression equation that can be used to predict annual sales given the years of experience. Use the excel regression tool.
b. Use the estimated regression equation to predict annual sales for a salesperson with 9 years of experience. Provide an approximate 95% confidence interval.
Use the Financial database from “Excel Databases.xls” on Blackboard. Use Total Revenues, Total Assets, Return on Equity, Earnings Per Share, Average Yield, and Dividends Per Share to predict the average P/E ratio for a company. Use Excel to develop the multiple linear regression model. Assume a 5% level of significance.
Which independent variable is the strongest predictor of the average P/E ratio of a company?
A. Total Revenues
B. Average Yield
C. Earnings Per Share
D.Return on Equity
E. Total Assets
F.Dividends Per Share
Company
Type
Total Revenues
Total Assets
Return on Equity
Earnings per Share
Average Yield
Dividends per Share
Average P/E Ratio
AFLAC
6
7251
29454
17.1
2.08
0.9
0.22
11.5
Albertson's
4
14690
5219
21.4
2.08
1.6
0.63
19
Allstate
6
20106
80918
20.1
3.56
1
0.36
10.6
Amerada Hess
7
8340
7935
0.2
0.08
1.1
0.6
698.3
American General
6
3362
80620
7.1
2.19
3
1.4
21.2
American Stores
4
19139
8536
12.2
1.01
1.4
0.34
23.5
Amoco
7
36287…
The Transactional Records Access Clearinghouse at Syracuse University reported data showing the odds of an Internal Revenue Service audit. The following table shows the average adjusted gross income reported and the percent of the returns that were audited for 20 selected IRS districts.
Develop the estimated regression equation that could be used to predict the percent audited given the average adjusted gross income reported.
At the .05 level of significance, determine whether the adjusted gross income and the percent audited are related.
Did the estimated regression equation provide a good fit?
District
Adjusted Gross Income ($)
Percent Audited
Los Angeles
36,664
1.3
Sacramento
38,845
1.1
Atlanta
34,886
1.1
Boise
32,512
1.1
Dallas
34,531
1.0
Providence
35,995
1.0
San Jose
37,799
0.9
Cheyenne
33,876
0.9
Fargo
30,513
0.9
New Orleans
30,174
0.9
Oklahoma City
30,060
0.8
Houston
37,153…
Chapter 14 Solutions
Loose Leaf for Statistical Techniques in Business and Economics
Ch. 14 - There are many restaurants in northeastern South...Ch. 14 - The director of marketing at Reeves Wholesale...Ch. 14 - Thompson Photo Works purchased several new, highly...Ch. 14 - A consulting group was hired by the Human...Ch. 14 - Cellulon, a manufacturer of home insulation, wants...Ch. 14 - Refer to Self-Review 141 on the subject of...Ch. 14 - Prob. 5ECh. 14 - Prob. 6ECh. 14 - Prob. 3SRCh. 14 - Given the following regression output, answer the...
Ch. 14 - The following regression output was obtained from...Ch. 14 - A study by the American Realtors Association...Ch. 14 - The manager of High Point Sofa and Chair, a large...Ch. 14 - Prob. 10ECh. 14 - Prob. 11ECh. 14 - A real estate developer wishes to study the...Ch. 14 - Prob. 13CECh. 14 - Prob. 14CECh. 14 - Prob. 15CECh. 14 - Prob. 16CECh. 14 - The district manager of Jasons, a large discount...Ch. 14 - Suppose that the sales manager of a large...Ch. 14 - The administrator of a new paralegal program at...Ch. 14 - Prob. 20CECh. 14 - Prob. 21CECh. 14 - A regional planner is studying the demographics of...Ch. 14 - Great Plains Distributors, Inc. sells roofing and...Ch. 14 - Prob. 24CECh. 14 - Prob. 25CECh. 14 - Prob. 26CECh. 14 - An investment advisor is studying the relationship...Ch. 14 - Prob. 28CECh. 14 - Prob. 29CECh. 14 - The director of special events for Sun City...Ch. 14 - Prob. 31CECh. 14 - Prob. 32CECh. 14 - Prob. 33DACh. 14 - Prob. 34DACh. 14 - Prob. 35DACh. 14 - Prob. 1PCh. 14 - Quick-print firms in a large downtown business...Ch. 14 - The following ANOVA output is given. a. Compute...Ch. 14 - Prob. 1CCh. 14 - Prob. 2CCh. 14 - Prob. 3CCh. 14 - In a scatter diagram, the dependent variable is...Ch. 14 - What level of measurement is required to compute...Ch. 14 - If there is no correlation between two variables,...Ch. 14 - Which of the following values indicates the...Ch. 14 - Under what conditions will the coefficient of...Ch. 14 - Given the following regression equation, = 7 ...Ch. 14 - Given the following regression equation, = 7 ...Ch. 14 - Given the following regression equation, = 7 ...Ch. 14 - Prob. 1.9PTCh. 14 - In a multiple regression equation, what is the...Ch. 14 - Prob. 1.11PTCh. 14 - Prob. 1.12PTCh. 14 - For a dummy variable, such as gender, how many...Ch. 14 - What is the term given to a table that shows all...Ch. 14 - If there is a linear relationship between the...Ch. 14 - Given the following regression analysis output: a....Ch. 14 - Given the following regression analysis output. a....
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- Use the Financial database from “Excel Databases.xls” on Blackboard. Use Total Revenues, Total Assets, Return on Equity, Earnings Per Share, Average Yield, and Dividends Per Share to predict the average P/E ratio for a company. Use Excel to perform a forward selection regression analysis. Assume a 5% level of significance. Based on your final model, what is the p-value from the test of the overall model? Write your answer as a number and round to 3 decimal places. Company Type Total Revenues Total Assets Return on Equity Earnings per Share Average Yield Dividends per Share Average P/E Ratio AFLAC 6 7251 29454 17.1 2.08 0.9 0.22 11.5 Albertson's 4 14690 5219 21.4 2.08 1.6 0.63 19 Allstate 6 20106 80918 20.1 3.56 1 0.36 10.6 Amerada Hess 7 8340 7935 0.2 0.08 1.1 0.6 698.3 American General 6 3362 80620 7.1 2.19 3 1.4 21.2 American Stores 4 19139 8536 12.2 1.01 1.4 0.34 23.5 Amoco 7 36287 32489 16.7 2.76 3.1 1.4 16.1 Arco Chemical 2 3995 4116 6.2 1.14 6.1 2.8 40.4…arrow_forwardUse the International Stock Market database from “Excel Databases.xls” on Blackboard. Use Excel to develop a multiple regression model to predict the Nikkei by the DJIA, the Nasdaq, the S&P 500, the Hang Seng, the FTSE 100, and the IPC. Assume a 1% level of significance. What percent of residuals are within 1 standard error? Write your answer as a number rounded to 1 decimal place. Do not include the % sign in your answer DATE DJIA NASDAQ S&P 500 NIKKEI 225 HANG SENG FTSE 100 IPC 9-Feb 8270.87 1591.56 869.89 87.63 1658.5 5774.95 1351.73 9-Jan 8000.86 1476.42 825.88 97.73 1856.39 6375.22 1616.08 8-Dec 8776.39 1577.03 903.25 89.49 1820.22 6033.18 1436.55 8-Nov 8829.04 1535.57 896.24 86.68 1850.86 7041.92 1612.58 8-Oct 9336.93 1720.95 968.75 107.68 2319.76 8780.95 2284.53 8-Sep 10850.66 2091.88 1164.74 118.69 2678.44 10077.78 2554.66 8-Aug 11543.55 2367.52 1282.83 121.78 2929.61 10569.58 2700.02 8-Jul 11378.02 2325.55 1267.38 127.03…arrow_forwardJensen, Solberg, and Zorn investigated the relationship of insider ownership, debt, and dividend policies in companies. One of their findings was that firms with high insider ownership choose lower levels of both debt and dividends. Shown here is a sample of data of these three variables for 11 different industries. Use the data to develop the equation of the regression model to predict insider ownership by debt ratio and dividend payout. Comment on the regression coefficients.arrow_forward
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