In 1990, Business Week magazine compiled financial data on the 1,000 companies that had the biggest impact on the U.S. economy. Data sampled from the top 500 companies in Business Week's report are presented in the following table. In addition to the company name, four variables are shown:
1990 rank: Based on company's market value (share price on March 16, 1990, multiplied by available common shares outstanding)
1989 rank: Rank in 1989 compilation
P-E ratio: Price-to-earnings ratio, based on 1989 earnings and March 16, 1990, share price
Yield: Annual dividend rate as a percentage of March 16, 1990, share Price

Answer the following questions about these data.
a. What is the estimated least-squares equation for the regression of yield (Y) on 1989 rank (X2) and P-E ratio (X3)?
b. Using your answer to part (a), give a point estimate for the yield for a company that had a 1989 ranking of 200 and a P-E ratio of 10.
c. Find the R2-value for the regression in part (a), and comment on the fit of the model.

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1990 1989 P-E 1990 1989 P-E Rank Rank Ratio Yield Company Company Rank Rank Ratio Yield 17 2.87 ITT 19 2.54 Humana AT&T Merck Boeing American Home Products Walt Disney Pfizer MCI Communications Dunn & Bradstreet United Telecommunications Warner Lambert 8 2.98 162 209 15 262 7 2.91 242 262 17 187 9 4.73 Citizens Utilities 348 302 20.00 52 72 19 0.00 MNC Financial345 398 65.46 48 15 4.27Bausch &Lomb 354 3 15 1.99 356 471 6 0 497 514 14 0.33 2 57 236 172 Lincoln National 273 274 7 27 4 24 1.72 omon 32 37 4 4 Walgreen 42 23 0.41 46 14 4.10 46 2.61 Medtronic 63 77 91 74 Circuit City 93 22 Regression of Y on X2 and X3 DF Sum of Squares Mean Square F Value Pr> F Source Model Error Corrected Total 0.51 0.0011 26.58272135 21.49757365 19 48.08029500 13.29136068 17 1.26456316 R-Square Coeff Var Root MSE Y Mean 0.552882 45.24353 1.124528 2.485500 Portion of output omitted Parameter Intercept x2 хз Estimate | Standard Error | t Value ! Pr > 6.873525074 0 0.004138085 0.00164749 2.51 0.0224 0.234451675 0 099001534 6.94 <0001 1675 0.05292277 4.43