Regression Kenneth Mccoin, CFA, is a fairly tough interviewer. Last year, he handed each job applicant a sheet of paper with the information in the following table, and he then asked several questions about regression analysis. Some of Mccoin's questions, along with a sample of the answers he received to each, are given below. Mccoin told the applicants that the independent variable is the ratio of net income to sales for restaurants with a market cap of more than $100 million and the dependent variable is the ratio of cash flow from operations to sales for those restaurants. Regression Statistics Multiple R R-squared Standard error Observations 0.8623 0.7436 0.0213 24 df F 63.81 ANOVA Regression Residual Total Significance F 0 MSS 0.029000 0.000455 1 22 23 SS 0.029 0.010 0.040 p-Value Coefficients 0.077 0.826 Intercept Slope Standard Error 0.007 0.103 Statistic 11.328 7.988 0 0 Q1. What is the value of the coefficient of determination? Q2. What is the correlation between X and Y? Q3. If the ratio of net income to sales for a restaurant is 5 percent, what is the predicted ratio of cash flow from operations to sales? Q4. Is the relationship between the ratio of cash flow to operations and the ratio of net income to sales significant at the 5 percent level? Regression Kenneth Mccoin, CFA, is a fairly tough interviewer. Last year, he handed each job applicant a sheet of paper with the information in the following table, and he then asked several questions about regression analysis. Some of Mccoin's questions, along with a sample of the answers he received to each, are given below. Mccoin told the applicants that the independent variable is the ratio of net income to sales for restaurants with a market cap of more than $100 million and the dependent variable is the ratio of cash flow from operations to sales for those restaurants. Regression Statistics Multiple R R-squared Standard error Observations 0.8623 0.7436 0.0213 24 df F 63.81 ANOVA Regression Residual Total Significance F 0 MSS 0.029000 0.000455 1 22 23 SS 0.029 0.010 0.040 p-Value Coefficients 0.077 0.826 Intercept Slope Standard Error 0.007 0.103 Statistic 11.328 7.988 0 0 Q1. What is the value of the coefficient of determination? Q2. What is the correlation between X and Y? Q3. If the ratio of net income to sales for a restaurant is 5 percent, what is the predicted ratio of cash flow from operations to sales? Q4. Is the relationship between the ratio of cash flow to operations and the ratio of net income to sales significant at the 5 percent level