Jensen, Solberg, and Zorn investigated the relationship of insider ownership, debt, and dividend policies in companies. One of their findings was that firms with high insider ownership choose lower levels of both debt and dividends. Shown here is a sample of data of these three variables for 11 different industries. Use the data to develop the equation of the regression model to predict insider ownership by debt ratio and dividend payout. Comment on the regressioncoefficients.

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Debt Ratio Insider Ownership 8.2 18.4 11.8 28.0 7.4 15.4 15.7 18.4 13.4 18.1 10.0 Dividend Payout 10.4 14.3 12.1 11.8 10.6 12.6 12.6 7.2 11.3 4.1 9.0 Industry Mining Food and beverage Furniture Publishing Petroleum refining Glass and cement Motor vehicle Department store Restaurant Amusement Hospital 14.2 20.8 18.6 18.5 28.2 24.7 15.6 21.7 23.0 46.7 35.8