A study investigated the relationship between audit delay (the length of time from a company's fiscal year-end to the date of the auditor's report) and variables that describe the client and the auditor. Some of the independent variables that were included in this study follow: Industry A dummy variable coded 1 if the firm was an industrial company or 0 if the firm was a bank, savings and loan, or insurance company. Public A dummy variable coded 1 if the company was traded on an organized exchange or over the counter; otherwise coded 0. Quality A measure of overall quality of internal controls, as judged by the auditor, on a 5-point scale ranging from "virtually none" (1) to "excellent" (5). Finished A measure ranging from 1 to 4, as judged by the auditor, where 1 indicates "all work performed subsequent to year- end" and 4 indicates "most work performed prior to year-end." Delay Industry Public Quality Finished 91 6586822766722F5%267655402277372222123 69 0 0101 00 00000 0 0 0 0 3 3 2 1 0 1 13221 4 3 +2 4 1 5 2 0 1 1 0 0 5 3 0 0 3 2 0 1 2 3 0 0 1 3 1 0 1 2 1 0 89 1 0 1 0 225 2 1 4 1 0 2 2 1 0 1 2 1 0 5 2 1 0 2 2 1 1 3 1 1 0 2 3 1 0 4 2 1 1 3 2 1 0 5 2 69 1 0 3 3 1 0 5 1 94 1 0 1 1 1 1 5 2 1 1 4 3 69 1 0 2 2 1 0 4 4 79 1 0 5 2 1 0 1 4 91 1 0 4 1 92 1 0 1 4 1 1 4 3 1 0 5 21 1 0 5 (a) Develop the estimated regression equation using all of the independent variables included in the data. Let x1 represent Industry. Let x2 represent Public. Let x3 represent Quality. Let x4 represent Finish. If required, round your answer to three decimal places. For subtractive or negative numbers use a minus sign even if there is a + sign before the blank. (Example: -300) + x1 + x2 + X3 + X4 (b) How much of the variation in the sample values of delay does this estimated regression equation explain? If required, round your answer to one decimal place. % What other independent variables could you include in this regression model to improve the fit? (i) company name, name of company that did the audit (ii) type of audit, amount of taxes reported by the company that is being audited (iii) type of audit, company name, amount of taxes reported by the company that is being audited (iv) company name, name of company that did the audit, amount of taxes reported by the company that is being audited - Select your answer - (c) Test the relationship between each independent variable and the dependent variable at the 0.05 level of significance. If required, round your answers to four decimal places. The p-value associated with the estimated regression parameter b1 is - Select your answer - than the level of significance, we Interpret the relationship between Delay and Industry. Because this p-value is Select your answer - the hypothesis that 1 = 0. We - Select your answer - conclude that there is a relationship between Industry and Delay. The p-value associated with the estimated regression parameter b2 is Because this p-value is Select your answer - the hypothesis that 2 = 0. - Select your answer than the level of significance, we Interpret the relationship between Delay and Public. - We - Select your answer - conclude that there is a relationship between Public and Delay. The p-value associated with the estimated regression parameter b3 is Because this p-value is - Select your answer - than the level of significance, we Interpret the relationship between Delay and Quality. - Select your answer the hypothesis that 3 = 0. We - Select your answer - conclude that there is a relationship between Delay and Quality. The p-value associated with the estimated regression parameter b4 is - Select your answer than the level of significance, we - Interpret the relationship between Delay and Finished. Because this p-value is Select your answer - the hypothesis that 4 = 0. We - Select your answer - conclude that there is a relationship between Delay and Finished. (d) Remove all independent variables that are not significant at the 0.05 level of significance from the estimated regression equation. What is your recommended estimated regression equation? Enter a coefficient of zero for any independent variable you chose to remove. If required, round your answer to three decimal places. Do not round intermediate calculations. = + X1 + X2 + X3 + X4