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A financial analyst engaged in business valuation obtained financial data on 71 drug companies. Let Y correspond to the price-to-book value ratio, X1 correspond to
A financial analyst engaged in business valuation obtained financial data on 71 drug companies. Let Y correspond to the price-to-book value ratio, X1 correspond to the return on equity, and X2 correspond to the growth percentage. Use the accompanying data to complete parts a. through e. below.
Part 1
a. Develop a regression model to predict price-to-book-value ratio based on return on equity.
Yi=____________+____________X1i
(Round to four decimal places as needed.)
Price/Book Value Ratio | Return on Equity | Growth% |
1.562 | 12.911 | 6.382 |
8.216 | 11.793 | 135.677 |
2.074 | 12.326 | 0.005 |
6.625 | 25.205 | 14.109 |
1.217 | 8.703 | 22.807 |
3.289 | 38.147 | 19.081 |
2.366 | 25.598 | 24.564 |
5.305 | 19.685 | 11.621 |
2.403 | 22.722 | 49.823 |
7.743 | 69.698 | 36.761 |
0.424 | 3.897 | 41.116 |
2.472 | 9.131 | 28.918 |
7.626 | 29.186 | 51.963 |
5.138 | 17.754 | 25.053 |
2.117 | 29.352 | 23.912 |
4.778 | 31.434 | 9.484 |
2.179 | 14.679 | 18.557 |
4.064 | 11.926 | 39.199 |
1.875 | 14.269 | 39.533 |
1.598 | 14.114 | 27.039 |
1.894 | 14.807 | 13.118 |
4.881 | 20.606 | 17.299 |
2.382 | 14.845 | 15.887 |
2.017 | 5.629 | 16.757 |
2.912 | 11.149 | 8.349 |
1.844 | 16.248 | 18.333 |
5.489 | 23.915 | 16.769 |
4.687 | 14.634 | 46.545 |
2.628 | 6.299 | 34.143 |
1.627 | 18.973 | 8.443 |
8.525 | 39.025 | 14.998 |
2.129 | 15.269 | 25.058 |
2.914 | 19.805 | 0.238 |
7.536 | 18.374 | 3.286 |
3.259 | 20.669 | 9.494 |
2.723 | 34.727 | 7.151 |
2.499 | 15.484 | 9.503 |
1.269 | 10.358 | 4.719 |
3.008 | 23.586 | 4.141 |
10.308 | 91.593 | 13.398 |
2.004 | 1.682 | 15.937 |
1.638 | 9.393 | 5.707 |
2.003 | 19.458 | 0.035 |
7.204 | 5.074 | 102.676 |
1.206 | 42.833 | 1.617 |
5.795 | 90.885 | 73.992 |
6.569 | 19.487 | 8.912 |
2.613 | 27.292 | 34.558 |
3.386 | 12.948 | 12.074 |
7.018 | 24.605 | 11.575 |
13.716 | 82.022 | 24.627 |
4.088 | 1.535 | 20.245 |
7.081 | 3.731 | 22.215 |
6.208 | 31.508 | 49.941 |
1.071 | 5.088 | 13.334 |
9.351 | 47.847 | 61.224 |
1.282 | 13.395 | 10.811 |
0.979 | 36.046 | 8.989 |
3.896 | 28.676 | 70.996 |
3.599 | 18.012 | 51.864 |
2.126 | 14.019 | 16.986 |
10.104 | 133.086 | 171.426 |
4.219 | 21.974 | 8.521 |
8.518 | 11.273 | 247.752 |
2.005 | 17.189 | 10.894 |
4.156 | 19.395 | 6.441 |
2.347 | 8.448 | 24.471 |
2.903 | 18.576 | 14.321 |
4.555 | 21.675 | 5.708 |
4.962 | 49.512 | 31.362 |
2.071 | 19.305 | 3.877 |
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