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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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