Refer to the Financial Data Set (available in the Excel Assignments & Data sets module on CANVAS) A. Use excel to find the regression equation to predict the average PE ratio from the other variables presented. B. From your output, write the result in the form of an equation. C. What is the value of R2? Based on R2 and the global test, does this relationship appear to be significant at the .05 level of significance? D. Conduct a test of hypothesis on each individual variable at the .10 level of significance. Are there any variables that should be deleted? E. Use excel to find the regression equation again, this time use only those variables that appear to have a significant relationship (as determined in part D) to the average PE ratio.

What is the step on Excel?

Company AFLAC Type Total Revenues Total Assets Return on Equity Earnings per Share Average Yield Dividends per Share Average P/E Ratio 7251 29454 Albertson's 17.1 2.08 14690 0.9 5219 0.22 11.5 Allstate 21.4 2.08 20106 1.6 0.63 80918 20.1 19 Amerada Hess 3.56 8340 7935 0.36 10.6 American General 0.2 0.08 1.1 3362 80620 0.6 American Stores 7. 698.3 2. 19 3 19139 8536 1.4 Amoco 12.2 21.2 1.01 1.4 36287 0.34 32489 23.5 Arco Chemical 16.7 3995 2.76 3.1 4116 1.4 16.1 Ashland 6.2 1.14 6.1 14319 7777 2.8 Atlantic Richfield 9.5 40.4 3.8 19272 2.3 25322 1.1 Bausch & Lomb 21.8 12.4 5.41 3.8 1916 2.83 2773 3.8 Baxter International 6 0.89 6138 2.6 8707 1.04 11.5 2.6 Bristol-Myers Squibb 1.06 2.3 16701 14977 1.13 44.4 47.2 Burlington Coat 3.14 1777 2 775 1.52 Central Maine Power 12.3 24.1 1.18 0.1 954 2299 0.02 Chevron 2.4 12.9 0. 16 41950 7.8 35473 0.9 79.6 CIGNA 18.6 4.95 14935 3 108199 2.28 13.7 15.2 Cinergy 4.88 2 4353 8858 1.1 13.3 11.4 Dayton Hudson 1.59 27757 5.1 1.8 22.4 Dillard's 14191 18 1.7 1.2 6817 5592 0.33 9.2 16.2 2.31 04 0.16 15.7