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The two regressions below show Profitability for companies from the Forbes 500 list as a function of company specifics. Conduct a Partial F-Test to analyze

The two regressions below show Profitability for companies from the Forbes 500 list as a function of company specifics. Conduct a Partial F-Test to analyze if adding the variables Assets and Sales is worthwhile. Use a level of significance of 5%. Show all of your work in the space below; correct but unsupported answers will be assigned a score of zero. Provide a verbal conclusion of your findings.

ANOVA df SS MS F ANOVA df SS MS F
Regression 1 28775089 28775089 106.69 Regression 3 32844180 10948060 49.17
Residual 77 20768358 269719 Residual 75 16699267 222657
Total 78 49543447 Total 78 49543447
Coefficient t Stat P-value Coefficient t Stat P-value
Intercept -144.18 -2.13 0.04 Intercept -178.83 -2.75 0.00
Employees 9.42 10.33 0.00 Assets 0.00 0.02 0.98
Sales 0.09 3.27 0.00
Employees 0.88 0.38 0.71

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