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

Effect of resolution-liquidation of companies, Effect of Resolution The...

Effect of Resolution The consequences of the resolution to wind up are: 1) The company must cease to carry on its business except so far as is necessary for the beneficial win

Describe the meaning and the purpose of financial instrument, Question A T...

Question A The key functions of financial system are to provide a link between savers and investors. What are the key functions of financial market Question B Describe the me

What is audit sampling, Q. What is Audit Sampling? Audit Sampling - App...

Q. What is Audit Sampling? Audit Sampling - Application of an AUDIT procedure to less than 100% of items within anaccount BALANCE or class of transactions for purpose of evalua

compute cv, The managers of Merton Medical Clinic are analyzing a proposed...

The managers of Merton Medical Clinic are analyzing a proposed project. The project's most likely NPV is $120,000, but, as evidenced by the following NPV distribution, there is con

Compute the companys largest available depletion deduction, In May 2011, Yo...

In May 2011, Your Company purchased the rights to a natural resource for $4,125,000. The estimated recoverable units from the natural resource amount to 5,500,000 units. During the

Financial statements, Describe the following questions:- Q.1 Explain how...

Describe the following questions:- Q.1 Explain how financial statements assist in the capital allocation process. How are financial statements limited? Which financial statement

Simulate the robot on a computer, Assuming the robot is placed on track at ...

Assuming the robot is placed on track at the packing station facing away from the station) the robot traverses the entire track. During this step, the robot will follow a left-hand

Provision and contingences, what is the accounting procedure for a warranty...

what is the accounting procedure for a warranty provision?

Recording and reporting Equity, Ask qCamp Corp had the following balances i...

Ask qCamp Corp had the following balances in its stockholders'''' equity at jan 1: Common stock, $2, par value, 450,000 shares issued $900,000 Additional pd in capial 1,200,000 Ret

consignment account, A of surat consigns goods to B of jaipur to be sold ...

A of surat consigns goods to B of jaipur to be sold at or above invoice price.B is entitled to get a commission of 8% on sales at invoice price plus 25% of any surplus price reali

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