Question
Suppose that you have estimated a regression model that specifies ent cash flow as the dependent variable and sales as the independent variable. The output
Suppose that you have estimated a regression model that specifies ent cash flow as the dependent variable and sales as the independent variable. The output follows.
Regression Statistics:
Multiple R 0.279075347
R square 0.077883049
Adjusted R Square 0.044950301
Standard Error 25359.93796
Intercept:
Coefficients 184943.5835
standard error: 13024.64609
T-STAT: 14.19950931
p-Value: 2.55063E-14 Sales:
Coefficients 0.062008718
Standard error: 0.040322297
T-STAT:1.537827016
p-Value: 0.135316139
Use the key regression statistics discussed in the chapter to determine whether it is appropriate to use this regression model to forecast net cash flow.
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