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

Help, Ask question Sean Corp. issued a $60,000, 10 year bond at the face ra...

Ask question Sean Corp. issued a $60,000, 10 year bond at the face rate of 8% annually on 1/1/X0. The market rate was 10%. How much cash will the bond investors receive at the end

Show the calculations and journal entries, In the current year, Company A i...

In the current year, Company A is formed with $630,000 in capital from the sale of 21,000 shares of stock at $30 a share. Company A, which has no other operations, immediately acqu

Prepare a cash budget, The following information for the six months ended 3...

The following information for the six months ended 31 December 2009 relates to the business of Mr N Morris: a) Opening cash (including bank) balance Rs 1,200 b) Production in unit

Income statement preparation, Income Statement Preparation The following i...

Income Statement Preparation The following information is taken from the records of Wadley's Car Wash for the year ended December 31, 2012. Income taxes . . . . . . . . . . . . .

Prepare a lease amortization schedule, LessorMfg Corp. is a manufacturer of...

LessorMfg Corp. is a manufacturer of heavy equipment. On January 1, 2013, LessorMfg Corp. leases equipment to Small Company under a six-year noncancelable lease agreement. The foll

Personal property, Personal Property - Movable property which isn't affixed...

Personal Property - Movable property which isn't affixed to land (REAL PROPERTY). Personal property comprises tangible items likecars, cash and computers and intangible items, like

Theoretical value of shareholding, Q. Theoretical value of shareholding? ...

Q. Theoretical value of shareholding? (i) Theoretical value of shareholding Theoretical ex-rights value = ((No. shares in issue×Market value) + (No. rights shares× righ

Enumerate the characteristics of accounting information, Enumerate the char...

Enumerate the characteristics of accounting information Qualities, or characteristics, which have just been depicted would help us to decide whether accounting information is p

Holding company with more than one subsidiary company, Holding company with...

Holding company with more than one subsidiary company Under this type of structure, the holding company controls more than one company. For example H ltd may Own 80% of S1, 75%

Show the foreign tax credit, Q. Show the Foreign Tax Credit? Foreign Ta...

Q. Show the Foreign Tax Credit? Foreign Tax Credit - A U.S. taxpayer who pays or accrues income tax to a foreign country may elect to credit or deduct these taxes in a determin

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