Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please explain in detail and show clear workings for better understanding thank you. 6. The following two tables present the SPSS regression results using the

Please explain in detail and show clear workings for better understanding thank you.

image text in transcribed
6. The following two tables present the SPSS regression results using the Ordinary Least Square (OLS) method. The dependent variable is the firm's performance measured by its profitability (%). The independent variables are the growth rate of sales (%), the ratio of investment to total assets (%), and education background of the employees (measured by the average number of employees' schooling years). The number of sample firms is 90. (Note: All parts of this question carry equal marks) Model Summary Adjusted R Std. Error of the Model R Square Square Estimate 1 153 133 0508356243 Coefficients Unstandardize Standardized d Coefficients Coefficients Sig. Model1 Std Beta Error Beta (Constant) 058 014 4.166 000 Sales growth 075 022 351 3.433 .001 Investment .181 112 .166 1.619 109 Education .004 .001 4.000 level .218 .000 a Dependent Variable: profitability b. Independent variables: sales growth, investment, and education background of employees. (a) Write the fitted regression equation. Explain which type of data it is for each variable involved in the regression equation. Can you measure the education background of employees in an alternative way? (b) Interpret the estimation results and comment on the impact of independent variables on the dependent variable. (c) Interpret and discuss the model performance. (d) Suppose that the management of a company (similar to the sample firms) wants to know how the firm's industry affects its profitability. How would you modify the above- mentioned regression equation in order to consider the industry effect

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Equations & Answers

Authors: Barcharts, BarCharts Inc

1st Edition

1423218248, 9781423218241

More Books

Students also viewed these Accounting questions

Question

2. Value-oriented information and

Answered: 1 week ago

Question

1. Empirical or factual information,

Answered: 1 week ago

Question

1. To take in the necessary information,

Answered: 1 week ago