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 3 variables for 11 different industries. Using the data from the table, develop a multiple regression model to predict insider ownership from debt ratio and dividend payout. Comment on the strength of the model and the predictors by examining the ANOVA table and the t tests.

Insider Debt Dividend Ownership Ratio Payout Industry Mining 8.2 14.2 10.4 Food and Beverage 18.4 20.8 14.3 Furniture 11.8 18.6 12.1 Publishing 28.0 18.5 11.8 Petroleum refining 7.2 28.1 10.3 Glass and cement 15.4 24.7 12.6 Motor vehicle 15.7 15.6 12.6 Department store 18.4 21.7 7.2 Restaurant 13.4 23.0 11.3 Amusement 18.1 46.7 4.1 Hospital 10.0 35.8 9.0 *** * Round your answers to 4 decimal places. * Round your answers to 2 decimal places. *Round your answers to 3 decimal places. *** * * The regression model is: Insider Ownership = + Debt Ratio + * Dividend Payout ** *** The overall value of F is only with p-value of This model *** significant significant (tDebt = with a p-value of *** and tDividend *** with a p-value of ***). Insider Debt Dividend Ownership Ratio Payout Industry Mining 8.2 14.2 10.4 Food and Beverage 18.4 20.8 14.3 Furniture 11.8 18.6 12.1 Publishing 28.0 18.5 11.8 Petroleum refining 7.2 28.1 10.3 Glass and cement 15.4 24.7 12.6 Motor vehicle 15.7 15.6 12.6 Department store 18.4 21.7 7.2 Restaurant 13.4 23.0 11.3 Amusement 18.1 46.7 4.1 Hospital 10.0 35.8 9.0 *** * Round your answers to 4 decimal places. * Round your answers to 2 decimal places. *Round your answers to 3 decimal places. *** * * The regression model is: Insider Ownership = + Debt Ratio + * Dividend Payout ** *** The overall value of F is only with p-value of This model *** significant significant (tDebt = with a p-value of *** and tDividend *** with a p-value of ***)