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2. A researcher aims to investigate the determinants of accounting quality of firms. With a sample that contains 108 firm-year observations from 1984 to 2003, the research run a mult- variate regression and got the following results: EQit = Bo + B1ASSET + B1STDCFOt+ B2SALESt + B3CYCLEt Where EQ is standard deviation of the Earnings; ASSET is total assets; STDCFO is standard deviation of cash flow from operation; SALES is sales revenue and CYCLE is operating cycle. Variables Coefficient Estimated Standard Deviation Intercept 0.0157 0.0019 ASSET -0.0033 -0.0021 STDCFO 0.1388 0.0043 SALES 0.0004 0.0004 CYCLE 0.0321 0.0093 The total sum of

2. A researcher aims to investigate the determinants of accounting quality of firms. With a sample that contains 108 firm-year observations from 1984 to 2003, the research run a mult- variate regression and got the following results: EQit = Bo + B1ASSET + B1STDCFOt+ B2SALESt + B3CYCLEt Where EQ is standard deviation of the Earnings; ASSET is total assets; STDCFO is standard deviation of cash flow from operation; SALES is sales revenue and CYCLE is operating cycle. Variables Coefficient Estimated Standard Deviation Intercept 0.0157 0.0019 ASSET -0.0033 -0.0021 STDCFO 0.1388 0.0043 SALES 0.0004 0.0004 CYCLE 0.0321 0.0093 The total sum of

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter10: Statistics
Section10.6: Summarizing Categorical Data
Problem 23PPS
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Required: (a). Interpret the partial slope coefficient for Asset. Is it significantly negative considering a t- test with 5% significance level? Explain your answer. (b). Interpret the partial slope coefficient for operation cycle. Is this coefficient significantly different from zero considering the 95% confidence interval? Explain your answer. (c). Calculate and interpret the statistic adjusted R-square. (d). To test the overall significance of the model at the 10% significance level, what are the null hypothesis and the alternative hypothesis? Use the F statistics to test the overall significance and explain your results.
Transcribed Image Text:Required: (a). Interpret the partial slope coefficient for Asset. Is it significantly negative considering a t- test with 5% significance level? Explain your answer. (b). Interpret the partial slope coefficient for operation cycle. Is this coefficient significantly different from zero considering the 95% confidence interval? Explain your answer. (c). Calculate and interpret the statistic adjusted R-square. (d). To test the overall significance of the model at the 10% significance level, what are the null hypothesis and the alternative hypothesis? Use the F statistics to test the overall significance and explain your results.
2. A researcher aims to investigate the determinants of accounting quality of firms. With a sample that contains 108 firm-year observations from 1984 to 2003, the research run a mult- variate regression and got the following results: EQit = Bo + B1ASSET{t + B1STDCF0;t+ B2SALESit + B3CYCLEL Where EQ is standard deviation of the Earnings; ASSET is total assets; STDCFO is standard deviation of cash flow from operation; SALES is sales revenue and CYCLE is operating cycle. Variables Coefficient Estimated Standard Deviation Intercept 0.0157 0.0019 ASSET -0.0033 -0.0021 STDCFO 0.1388 0.0043 SALES 0.0004 0.0004 CYCLE 0.0321 0.0093 The total sum of squares is 487,135 and the residual sum of squares is 132,576.
Transcribed Image Text:2. A researcher aims to investigate the determinants of accounting quality of firms. With a sample that contains 108 firm-year observations from 1984 to 2003, the research run a mult- variate regression and got the following results: EQit = Bo + B1ASSET{t + B1STDCF0;t+ B2SALESit + B3CYCLEL Where EQ is standard deviation of the Earnings; ASSET is total assets; STDCFO is standard deviation of cash flow from operation; SALES is sales revenue and CYCLE is operating cycle. Variables Coefficient Estimated Standard Deviation Intercept 0.0157 0.0019 ASSET -0.0033 -0.0021 STDCFO 0.1388 0.0043 SALES 0.0004 0.0004 CYCLE 0.0321 0.0093 The total sum of squares is 487,135 and the residual sum of squares is 132,576.
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