1234567891011121314151617181920212223242526272829Price/Book Value Ratio Return on Equity13.0321.4058.3052.1136.6541.2393.2622.4495.2912.3987.7190.3532.5697.5935.1042.0124.7972.1824.1291.9181.5491.9515.0462.4172.1593.0111.7255.5824.698Growth%6.38511.846 135.66912.4590.07325.09214.1888.80422.76638.08218.98525.69624.51919.66611.62422.84949.96569.649 36.6963.819 41.1399.21829.10817.77225.11429.295 23.76431.4059.49714.75918.54112.02639.01614.22839.43914.09727.02214.84113.23720.66917.31114.88715.8495.60116.77511.1728.40116.16118.40423.973 16.67314.725 46.60528.83952.021 A financial analyst engaged in business valuation obtained financial data on 71 drug companies. Let Y correspond to the price-to-book value ratio, X₁ correspond tothe return on equity, and X₂ correspond to the growth percentage. Use the accompanying data to complete parts a. through e. below.Click the icon to view the business valuation data.a. Develop a regression model to predict price-to-book-value ratio based on return on equity.Ŷ₁ = + X₁i(Round to four decimal places as needed.)b. Develop a regression model to predict price-to-book-value ratio based on growth.Î₁ = + x₂i(Round to four decimal places as needed.)c. Develop a regression model to predict price-to-book-value ratio based on return on equity and growth.Î¡ = ■ + ■×₁¡ + ■×₂i(Round to four decimal places as needed.)

Given the data as Price/Book value ratio Return on Equity Growth % 1.405 13.032 6.385 8.305…

Answered: A financial analyst engaged in business…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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Based on the analyst's data and regression line, complete the following. For these data, values for earnings per share that are greater than the mean of the values for earnings per share tend to be paired with current stock prices that are (greater than, lesser than) the mean of the current stock prices. According to the regression equation, for an increase of one dollar in earnings per share, there is a corresponding increase of how many dollars in current stock price?
A park has kept the number of visitors since its opening in January. For the first six months of the year, the following numbers were recorded: Month Number of visitors Month Number of visitors January 133 April 640 February 183 May 1,879 March 285 June 2,550 Estimate the intercept and slope of the linear regression equation for forecasting the numbers of visitors. What are the forecasts for July through December of the year using the regression equation? The numbers of visitors to the park were 2,150 in July, and 2,660. Use Holt’s method with α=0.15 and β= 0.10 to find the one-step-ahead and two-step-ahead forecasts for September and October, respectively.
Using the regression formula with a slope = 5000 and intercept = 10,000, what would the predicted income be for someone who has 15 years of education? A. 60,000 B. 150,000 C. 85,000 D. 75,000
10) Using advertised prices for used Ford Escorts a linear model for the relationship between a car's age and its price is found. The regression has an R2-87.4%. Write a sentence summarizing what R2 says about this regression. A) The age of the car explains 9.35% of the variation in price. B) The price of the car explains 12.6% of the variation in age. C) The age of the car explains 87.4% of the variation in price. D) The price of the car explains 87.4% of the variation in age. E) The age of the car explains 12.6% of the variation in price. Solve. Round to two decimal places if necessary. 11) At one college, 68% of students have credit cards. A credit card company, looking for new customers, sets up a booth at the college. If they pick students at random, how many students should they expect to talk to before finding one who does not have a credit card? A) 32 B) 3.13 D) 68 C) 0.32 E) 1.47
please answer in text form and in proper format answer with must explanation , calculation for each part and steps clearly
The table below shows the approximate percent of students who sent applications to two colleges in various years since 1985. Years Since 1985 0 3 6 9 12 15 Percent 20 18 15 15 14 13 The scatter plot below is a representation of the table of data above. A regression equation for this line is What do the slope and y-intercept indicate? a. The slope indicates that the percent in 1985 should have been about 19%. The y-intercept indicates that the percent is falling at about 0.4% each year. b. The slope indicates that the percent is falling at about 0.4% each year. The y-intercept indicates the percent in 1985 should have been about 19%. c. The slope indicates tha the percent has remained the same for each year. The y-intercept indicates the percent in 1985 should have been 22%. d. There is not enough information to determine what the slope and y-intercept indicate. Please select the best answer from…
What is the dollar amount of change in sales for each new year according to the regression (slope) model? Do not use commas or $ in your answer.
Using the regression to model annual income, a variable for years of education has a slope = 2000. This means that the model predicts each additional year of education will yield an extra 2,000 for the average person's salary, regardless of how many total years of education a person has. A. True B. False
Part a: Make a scatter plot and determine which type of model best fits the data.Part b: Find the regression equation.Part c: Use the equation from Part b to determine y when x = 0.25
Use the Financial database from “Excel Databases.xls” on Blackboard. Use Total Revenues, Total Assets, Return on Equity, Earnings Per Share, Average Yield, and Dividends Per Share to predict the average P/E ratio for a company. Use Excel to develop the multiple linear regression model. Assume a 5% level of significance. Which independent variable is the strongest predictor of the average P/E ratio of a company? A. Total Revenues B. Average Yield C. Earnings Per Share D.Return on Equity E. Total Assets F.Dividends Per Share Company Type Total Revenues Total Assets Return on Equity Earnings per Share Average Yield Dividends per Share Average P/E Ratio AFLAC 6 7251 29454 17.1 2.08 0.9 0.22 11.5 Albertson's 4 14690 5219 21.4 2.08 1.6 0.63 19 Allstate 6 20106 80918 20.1 3.56 1 0.36 10.6 Amerada Hess 7 8340 7935 0.2 0.08 1.1 0.6 698.3 American General 6 3362 80620 7.1 2.19 3 1.4 21.2 American Stores 4 19139 8536 12.2 1.01 1.4 0.34 23.5 Amoco 7 36287…
The arm span and foot length were both measured (in centimeters) for each of 20 students in a biology class. The computer output displays the regression analysis. Which of the following is the best interpretation of the coefficient of determination r2? About 37% of the variation in arm span is accounted for by the linear relationship formed with the foot length. About 65% of the variation in foot length is accounted for by the linear relationship formed with the arm span. About 63% of the variation in arm span is accounted for by the linear relationship formed with the foot length. About 63% of the variation in foot length is accounted for by the linear relationship formed with the arm span.
We run the following regression using a sample of 148 women living in the western states. The variable wage is the hourly wage ( in USD) and educ is the number of years of education completed. wage = -3.07 + 1.52 educ Which statement best described the estimated slope coefficient? Group of answer choices A 1.52 extra years of education is predicted to increase wage by 1 USD An extra year of education is predicted to increase hourly wage by 1.52 USD A 1 percent increase in education is predicted to increase wage by 1.52 percent A 1.52 percent increase in education is predicted to increase wage by 1

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