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

Risk and return - issue of debt, Q. Risk and Return - issue of debt? Ra...

Q. Risk and Return - issue of debt? Raising debt finance will raise the gearing and the financial risk of the company while raising equity finance will lower gearing and financ

Ticket Id - EM131058373M27, hello, i have got my answer, but i don''t know ...

hello, i have got my answer, but i don''t know the PART C why doesn''t calculate "working capital: 60000"?????? can not find match number in the solution table

one parameter exponential smoothing model, The following table represents ...

The following table represents the demand for a product for the years 1990 to 2007: a.    Develop a linear trend line and use it to predict the quantity demanded for 2008,

Reserve requirement , 2(i). If all depositors tried to convert their deposi...

2(i). If all depositors tried to convert their deposits into cash at once, they would find that there are not sufficient reserves in the system to permit all of them to do this at

Realisation of assets-liquidation of companies, Realisation of assets 1...

Realisation of assets 1. Divisible property : The ownership of the company's property does not vest in the liquidator (unless the court makes a vesting order: s.240); but

Prepare partial income statement through fifo and lifo , Prepare Partial In...

Prepare Partial Income Statement through FIFO, And LIFO Methods The records of XYZ Restaurant Supply include the following accounts for cases of coffee cups at December 31 of t

OPERATING CYCLE, #question.DISCUSS THE APPLICABILITY OF AN OPERATING CYCLE ...

#question.DISCUSS THE APPLICABILITY OF AN OPERATING CYCLE IN POULTRY BUSINESS.

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

Income statement, what is the formulae for calculating Net income?

what is the formulae for calculating Net income?

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