Mr. X recently graduated from Y University with a degree in Management Engineering. He has been hired as a management trainee by a large engineering firm. As his first project, he is asked to study the gross profit of firms in the XYZ industry. Mr. X selects a sample of 58 firms and obtains data on the number of employees, number of consecutive common stocks dividend pay, the total value of inventory at the start of current year, and the gross profit for each firm. Data collected is presented in Table 1. What factors affect profitability in that industry? Using Regression Analysis.

32 3.70 120 44 6.50 33 6.44 590 110 9.13 34 1.28 440 38 1.20 35 4.16 280 24 0.89 36 3.87 650 60 1.20 37 3.87 650 60 1.20 38 0.98 150 24 1.30 39 2.80 140 12 1.80 40 1.30 65 21 0.32 41 1.23 130 42 0.82 42 1.60 115 80 0.76 43 4.50 390 120 3.60 44 5.70 670 64 8.40 45 3.15 205 43 0.51 46 0.64 40 14 0.87 47 3.40 480 88 5.50 48 6.70 810 98 9.88 49 5.70 670 64 8.40 50 3.15 205 43 0.51 51 0.64 40 14 0.87 52 3.40 480 88 5.50 53 6.70 810 98 9.88 54 3.70 120 44 6.50 55 6.44 590 110 9.13 56 1.28 440 38 1.20 57 4.16 280 24 0.89 58 3.87 650 60 1.20Beginning Firm Gross Profit Number of Consecutive Inventory (in million) Employees Dividends (in million) 2.80 140 12 1.80 1.30 65 WN 21 0.32 1.23 130 42 0.82 1.60 115 80 0.76 4.50 390 120 3.60 5.70 670 64 8.40 3.15 205 43 0.51 0.64 40 14 0.87 3.40 480 88 5.50 10 6.70 810 98 9.88 11 3.70 120 44 6.50 12 6.44 590 110 9.13 13 1.28 440 38 1.20 14 4.16 280 24 0.89 15 3.87 650 60 1.20 16 0.98 150 24 1.30 17 2.80 140 12 1.80 18 1.30 65 21 0.32 19 1.23 130 42 0.82 20 1.60 115 80 0.76 21 4.50 390 120 3.60 22 5.70 670 64 8.40 23 3.15 205 43 0.51 24 0.64 40 14 0.87 25 3.40 480 88 5.50 26 6.70 810 98 9.88 27 5.70 670 64 8.40 28 3.15 205 43 0.51 29 0.64 40 14 0.87 30 3.40 480 88 5.50 31 6.70 810 98 9.88