Chapter 15, Problem 25PS

Accounting Today identified top public accounting firms in ten geographic regions across the U.S. The file AccountingPartners6 contains data for public accounting firms in the Southeast, Gulf Coast, and Capital Regions. The variables are: revenue $\text{(\$millions),}$ numbers of partners in the firm, number of professional in the firm, proportion of business dedicated to management advisory service $(\text{MAS\%),}$ Whether the firm is located in Southeast Region $(0=\text{no,}\text{1}=\text{yes}),$ and whether the firm is located in the Gulf Coast Region $(0=\text{no,}\text{1}=\text{yes}).$

Develop the most appropriate multiple regression model to predict firm revenue. Be Sure to perform a through residual analysis. In addition, provide a detailed explanation of the results.