Question
A company is interested in the relationship between profit on a number of projects and two explanatory variables. These variables are the expenditure on research
A company is interested in the relationship between profit on a number of projects and two explanatory variables. These variables are the expenditure on research and development (RD) and a measure of risk (RISK) assigned at the outset of the project. Develop an appropriate model and provide a justification for your choice.
| PROFIT | RISK | RD |
| 396 | 8.5 | 132.58 |
| 130 | 7.5 | 81.928 |
| 508 | 10 | 145.992 |
| 172 | 8 | 90.02 |
| 256 | 7 | 114.408 |
| 32 | 7.5 | 53.704 |
| 102 | 7 | 76.244 |
| 102 | 8 | 71.68 |
| 536 | 9.5 | 151.592 |
| 102 | 7.5 | 74.816 |
| 214 | 6 | 108.752 |
| 200 | 8.5 | 92.372 |
| 158 | 7 | 92.26 |
| 32 | 6.5 | 60.732 |
| 116 | 7.5 | 78.12 |
| 120 | 5.5 | 90 |
| 270 | 9 | 105.532 |
| 270 | 8 | 111.832 |
| 1.150607 | 0.143936 | 0.60155 |
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Recent Advances In Computational Finance
Authors: Nikolaos S. Thomaidis, Jr. Dash, Gordon H.
1st Edition
1626181233, 978-1626181236
