Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Suppose you work for a consulting company and try to figure out what factors explaining the amount of debt a firm can take. After collecting
Suppose you work for a consulting company and try to figure out what factors explaining the amount of debt a firm can take. After collecting enough data, you run the following regression model: Y= a+b1*X1+b2*X2+b3*X3. The dependent variable Y is equal to Total liabilities / Total assets. The definitions of independent variables are: X1: Market value of stockholders' equity / Book value of equity. X2: Research and development expenses (R&D) / Total assets. X3: Net income/Total assets. You get the following regression results: Parameter Estimate Standard Error t Value Pr > |t| Intercept 0.92 0.23 0.46 0.84 X1 -0.03 0.02 -13.81 <.0001 X2 0.38 0.13 2.72 0.0064 X3 2.25 0.15 14.68 <.0001 Based on the regression results, answer the following questions: (1) Find the estimates of coefficients for each variable in the model. Which variable(s) is(are) statistically significant and why? (2) Briefly describe what you learn from the regression results. (3) Suppose the data includes columns Y, X1, X2, and X3 is named Sample1. Write the SAS codes to run the above regression model Suppose you work for a consulting company and try to figure out what factors explaining the amount of debt a firm can take. After collecting enough
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started