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

Accounting for PPE, Acquisition of Assets: The cost method of accounting is...

Acquisition of Assets: The cost method of accounting is used for the initial recording of all acquisitions of assets controlled by the authority. Cost is determined as the fair val

Common Stock, If you have 10,000 shares of common stock sold at $10 per sha...

If you have 10,000 shares of common stock sold at $10 per share; and 100,000 shares authorized at $1 par value how would you show this on the balance sheet? Also if we issue 10,00

Other aspects of the consolidated balance sheet, OTHER ASPECTS OF THE CONSO...

OTHER ASPECTS OF THE CONSOLIDATED BALANCE SHEET The consolidated balance sheet may require a special approach under the following situations: 1) Pre-acquisition losses in subs

PARTNERSHIP, CHARACTERISTICS OF PARTNERSHIP

CHARACTERISTICS OF PARTNERSHIP

Compute a confidence interval for minnesota, For this problem we will be wo...

For this problem we will be working with the Ericksen data set for describing the percentage of the population not counted in the US Census from 1980. In this data set we have diff

Calculate the net income, Jensen Company has the following situation: Sales...

Jensen Company has the following situation: Sales Price: $40 per unit Variable Cost Per Unit: $25 per unit Fixed Costs: $20,000 Units Sold: 4,000 Jensen is considering lowering the

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

Prepare journal entries to record the issuance of 100,000 shares of common stock at $20 per share for each of the following independent cases given below: a. Jackson Corporation

Show the capitalized cost, Q. Show the Capitalized Cost? Capitalized Co...

Q. Show the Capitalized Cost? Capitalized Cost - Expenditure identified with services or goods acquired and measured by theamount of cash paid or market value of other property

Provide doubtful debt , provide 5% for doubtful debt what is the journal en...

provide 5% for doubtful debt what is the journal entry

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