Explain r and r-squared- f-test and interpret its value, Financial Accounting

Assignment Help:

To decide in what zone should be placed a store which sells video-cassettes, the manager of a firm which sells and rents cassettes makes a study to estimate the demand for each store. The independent variables are: number of inhabitants, average income of inhabitants, number of competitors situated (all these variables refer to a one mile distance) and the price of a video-cassette. You will have a number of 15 supermarkets and the values of all 5 explicative variables. The data are given below:

Demand (yi)

No. of inhabitants (x1i)

Income (x2i)

 

Competitors (x3i)

Price (x4i)

323.581

5.556

42.746

3

2.49

343.682

5.917

43.106

2

2.99

375.264

5.483

46.993

5

2.99

351.242

6.400

43.249

2

1.99

328.417

5.917

40.695

3

2.49

318.069

6.683

41.253

3

2.49

330.959

6.065

40.791

2

2.49

267.236

7.491

39.932

3

2.49

320.883

6.284

36.826

1

2.99

409.535

5.851

45.300

3

2.99

316.262

5.681

42.645

3

2.49

351.806

5.187

42.306

2

2.99

333.655

6.164

44.842

3

1.99

372.679

7.320

45.233

3

2.99

362.796

5.062

41.426

3

2.99

Questions:

1.  What can you say about R and R-squared?

2.  How do you interpret the standard error?

3.  Explain briefly the meaning of the F-test and interpret its value

4.  For which variables did you obtain a significant coefficient? Interpret all the coefficients from an economic point of view

5.  Which variables you would eliminate if you were to re-do the estimation?


Related Discussions:- Explain r and r-squared- f-test and interpret its value

Problems and difficulties associated with forecasting, Q. Problems and diff...

Q. Problems and difficulties associated with forecasting? We have relied to a great degree on the forecasting of data in order to provide an evaluation of the proposal. Not the

Calculate the sales needed to earn a profit of 20% on sales, Question: ...

Question: The following data are obtained from the record of a factory:                                                        £                   £ Sales 4,000 units @ £2

Journalize, wrote check to purchase law books for 2500 what 2 accounts

wrote check to purchase law books for 2500 what 2 accounts

Prepare the journal entries, Prepare the journal entries required to record...

Prepare the journal entries required to record the following transactions of a nongovernment, not-for-profit organization.   1. Unrestricted cash contributions received durin

Calculate the profits for investments, Both a call and a put currently are ...

Both a call and a put currently are traded on stock XYZ; both have strike prices of $50 and expirations of 6 months.  What will be the profit to an investor who buys the call for $

Which is not true of a corporation, Q. Which of the following is not true o...

Q. Which of the following is not true of a corporation? a. It may buy, own, and sell property. b. It may sue and be sued. c. The acts of its owners bind the corporation. d. It may

Estimate cost of equity using dividend valuation model, Q. Estimate cost of...

Q. Estimate cost of equity using dividend valuation model? The cost of equity may be approximate using either the dividend valuation model or the capital asset pricing model. I

Example of continuous compounding, Determine the future value of Rs.1000 co...

Determine the future value of Rs.1000 compounded continuously for 5 year on the interest rate of 12 percent per year and contrast it along with annual compounding.   Solution :

What are the potential benefits of implementing abc, Question 1: (a) De...

Question 1: (a) Define program evaluation. (b) Discuss the four types of program evaluation that are usually carried in the Public Sector. Question 2 (a) You have

Inventory policy, Inventories constitute a important portion of the current...

Inventories constitute a important portion of the current assets ranging from 40 percent to 60 percent for manufacturing companies. The manufacturing companies conduct investments

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd