PRACTICE 3 (4 POINTS) This is a continuation of Practice 2 question. Your company's VP, after looking at the findings, want you to consider one more factor in the quantitative model: whether or not the industry is in a high tech industry, because he is under the impression that there would be difference in industry profitability depending on industry of industry. To accomplish this, you categorized the industries into three types types, with manufacturing industry coded as 1, high tech industry coded as 2, and service industry coded as 3. TO DO: Add Industry Type into the regression model for practice 2. Use the manufacturing industry as the reference category 1. Check if the previous 2 Is are still statistically significant, and also compare the coefficient size with those in the previous model 2. Check if the dummy variables are statistically significant. Report. 3. What signs are the dummy variables? What do they mean in general? 4. What the size of the coefficient of the dummy variables? What do they mean in general 5. Based on this finding, do you conclude whether or not the impression of your company's VP is supported. Briefly discuss. 26 Mean ROA (percentage) Supplier Number Suppliers Dependability Industry Type 20 8 21 1 15 12 16 2 10 36 20 2 25 5 28 3 10 25 12 2 5 10 10 1 20 7 30 1 10 15 12 2 20 16 20 2 9 17 9 3 5 20 7 3 25 20 22 3 25 8 23 2 12 12 14 1 10 36 13 3 30 7 35 2 20 8 2 14 5 15 2 28 7 40 2 19 20 22 3 28 12 3 30 13 33 I 28 9 28 1 18 29 19 1 8 32 7 2 5 5 3 S 2 8 3 10 10 28 2 25 36 26 2 24 23 27 2 22 23 20 1 24 27 22 4 7 5 5 6 7 8 6 10 15 17 19 2 14 16 17 1 20 20 26 3 22 36 24 3 26 24 23 2 SMS 9 32 PRACTICE 3 (4 POINTS) This is a continuation of Practice 2 question. Your company's VP, after looking at the findings, want you to consider one more factor in the quantitative model: whether or not the industry is in a high tech industry, because he is under the impression that there would be difference in industry profitability depending on industry of industry. To accomplish this, you categorized the industries into three types types, with manufacturing industry coded as 1, high tech industry coded as 2, and service industry coded as 3. TO DO: Add Industry Type into the regression model for practice 2. Use the manufacturing industry as the reference category 1. Check if the previous 2 Is are still statistically significant, and also compare the coefficient size with those in the previous model 2. Check if the dummy variables are statistically significant. Report. 3. What signs are the dummy variables? What do they mean in general? 4. What the size of the coefficient of the dummy variables? What do they mean in general 5. Based on this finding, do you conclude whether or not the impression of your company's VP is supported. Briefly discuss. 26 Mean ROA (percentage) Supplier Number Suppliers Dependability Industry Type 20 8 21 1 15 12 16 2 10 36 20 2 25 5 28 3 10 25 12 2 5 10 10 1 20 7 30 1 10 15 12 2 20 16 20 2 9 17 9 3 5 20 7 3 25 20 22 3 25 8 23 2 12 12 14 1 10 36 13 3 30 7 35 2 20 8 2 14 5 15 2 28 7 40 2 19 20 22 3 28 12 3 30 13 33 I 28 9 28 1 18 29 19 1 8 32 7 2 5 5 3 S 2 8 3 10 10 28 2 25 36 26 2 24 23 27 2 22 23 20 1 24 27 22 4 7 5 5 6 7 8 6 10 15 17 19 2 14 16 17 1 20 20 26 3 22 36 24 3 26 24 23 2 SMS 9 32
