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Region Revenue ($miI) Number of Partners Number of Professionals MAS (%) SE GC Southeast 338.00 157 1222 31 1 0 Southeast 130.80 51 576 10

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Region Revenue ($miI) Number of Partners Number of Professionals MAS (%) SE GC
Southeast 338.00 157 1222 31 1 0
Southeast 130.80 51 576 10 1 0
Southeast 109.60 93 755 13 1 0
Southeast 73.74 47 314 15 1 0
Southeast 68.56 26 253 11 1 0
Southeast 61.62 12 180 0 1 0
Southeast 44.87 38 172 2 1 0
Southeast 39.10 36 182 8 1 0
Southeast 32.49 27 116 3 1 0
Southeast 21.65 13 95 4 1 0
Southeast 21.07 32 79 24 1 0
Gulf Coast 171.08 130 674 14 0 1
Gulf Coast 113.80 124 522 6 0 1
Gulf Coast 86.00 22 366 15 0 1
Gulf Coast 72.33 20 364 46 0 1
Gulf Coast 50.00 16 137 4 0 1
Gulf Coast 49.37 28 276 30 0 1
Gulf Coast 27.33 21 132 17 0 1
Gulf Coast 21.74 14 95 9 0 1
Gulf Coast 19.60 14 77 0 0 1
Gulf Coast 18.50 14 68 8 0 1
Gulf Coast 17.50 12 80 1 0 1
Gulf Coast 17.20 14 75 14 0 1
Gulf Coast 15.85 14 65 12 0 1
Gulf Coast 15.22 14 67 7 0 1
Gulf Coast 14.40 11 61 10 0 1
Gulf Coast 14.14 5 40 20 0 1
Gulf Coast 13.20 13 43 21 0 1
Gulf Coast 12.00 15 60 3 0 1
Capital Region 90.80 13 344 26 0 0
Capital Region 59.66 14 177 35 0 0
Capital Region 47.77 29 155 21 0 0
Capital Region 41.10 18 205 36 0 0
Capital Region 29.78 33 111 7 0 0
Capital Region 25.00 11 141 22 0 0
Capital Region 24.02 13 115 6 0 0
Capital Region 22.78 19 82 11 0 0
Capital Region 22.30 10 106 6 0 0
Capital Region 21.80 11 59 1 0 0
Capital Region 20.99 16 103 0 0 0
Capital Region 20.78 21 90 26 0 0
Capital Region 18.79 15 73 21 0 0
Capital Region 18.00 19 57 8 0 0
Capital Region 16.90 21 95 19 0 0

Background Accounting Today identified top public accounting firms in ten geographic regions across the U.S. The file Accounting Partners6 contains data for public accounting firms in the Southeast, Gulf Coast, and Capital Regions. The variables are: revenue ($millions), number of partners in the firm, number of professionals in the firm, proportion of business dedicated to management advisory services (MAS%), whether the firm is located in the Southeast Region (0 = no, 1 = yes), and whether the firm is located in the Gulf Coast Region (0 = no, 1 = yes). Task Develop the most appropriate multiple regression model to predict firm revenue and make sure you answered all the questions listed below. (a) What type of regression, linear of logistic, is needed to predict the dependent variable? Are dummy variables needed for this study? (b) Develop the most appropriate multiple regression model to predict the dependent variable. Es- pecially, at the 0.05 level of significance, determine whether each independent variable makes a significant contribution to the regression model. On the basis of these results, indicate the inde- pendent variables to include in this model. (c) If this improves the model, add up to two interaction terms and two quadratic terms. (d) Perform a thorough residual analysis to check that the regression assumptions are verified. (e) Interpret the slopes and the determination coefficient RP. Background Accounting Today identified top public accounting firms in ten geographic regions across the U.S. The file Accounting Partners6 contains data for public accounting firms in the Southeast, Gulf Coast, and Capital Regions. The variables are: revenue ($millions), number of partners in the firm, number of professionals in the firm, proportion of business dedicated to management advisory services (MAS%), whether the firm is located in the Southeast Region (0 = no, 1 = yes), and whether the firm is located in the Gulf Coast Region (0 = no, 1 = yes). Task Develop the most appropriate multiple regression model to predict firm revenue and make sure you answered all the questions listed below. (a) What type of regression, linear of logistic, is needed to predict the dependent variable? Are dummy variables needed for this study? (b) Develop the most appropriate multiple regression model to predict the dependent variable. Es- pecially, at the 0.05 level of significance, determine whether each independent variable makes a significant contribution to the regression model. On the basis of these results, indicate the inde- pendent variables to include in this model. (c) If this improves the model, add up to two interaction terms and two quadratic terms. (d) Perform a thorough residual analysis to check that the regression assumptions are verified. (e) Interpret the slopes and the determination coefficient RP

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