A statistical program is recommended. A study investigated the relationship between audit delay (Delay), the length of time from a company's fiscal year-end to the date of the auditor's report, and variables that describe the client and the auditor. Some of the independent variables that were included in this study follow. Industry A dummy variable coded 1 if the firm was an industrial company or 0 if the firm was a bank, savings and loan, or insurance company. Public A dummy variable coded 1 if the company was traded on an organized exchange or over the counter; otherwise coded 0. Quality A measure of overall quality of internal controls, as judged by the auditor, on a five-point scale ranging from "virtually none" (1) to "excellent" (5). Finished A measure ranging from 1 to 4, as judged by the auditor, where 1 indicates "all work performed subsequent to year-end" and 4 indicates "most work performed prior to year-end." A sample of 40 companies provided the following data. Delay Industry Public Quality Finished 62 0 0 3 1 45 0 1 3 3 54 0 0 2 2 71 0 1 1 2 91 0 0 1 1 62 0 0 4 4 61 0 0 3 2 69 0 1 5 2 80 0 0 1 1 52 0 0 5 3 47 0 0 3 2 65 0 1 2 3 60 0 0 1 3 81 1 0 1 2 73 1 0 2 2 89 1 0 2 1 71 1 0 5 4 76 1 0 2 2 68 1 0 1 2 68 1 0 5 2 86 1 0 2 2 76 1 1 3 1 67 1 0 2 3 57 1 0 4 2 55 1 1 3 2 54 1 0 5 2 69 1 0 3 3 82 1 0 5 1 94 1 0 1 1 74 1 1 5 2 75 1 1 4 3 69 1 0 2 2 71 1 0 4 4 79 1 0 5 2 80 1 0 1 4 91 1 0 4 1 92 1 0 1 4 46 1 1 4 3 72 1 0 5 2 85 1 0 5 1 (a) Develop the estimated regression equation using all of the independent variables. Use x1 for Industry, x2 for Public, x3 for Quality, and x4 for Finished. (Round your numerical values to two decimal places.) Did the estimated regression equation developed in part (a) provide a good fit? Explain. (Use α = 0.05. For purposes of this exercise, consider an adjusted coefficient of determination value high if it is at least 50%.) Develop a scatter diagram showing Delay as a function of Finished. What does this scatter diagram indicate about the relationship between Delay and Finished? (b) On the basis of your observations about the relationship between Delay and Finished, use best-subsets regression to develop an alternative estimated regression equation to the one developed in (a) to explain as much of the variability in Delay as possible. Use x1 for Industry, x2 for Public, x3 for Quality, and x4 for Finished. (Round your numerical values to two decimal places.)

A statistical program is recommended. A study investigated the relationship between audit delay (Delay), the length of time from a company's fiscal year-end to the date of the auditor's report, and variables that describe the client and the auditor. Some of the independent variables that were included in this study follow. Industry A dummy variable coded 1 if the firm was an industrial company or 0 if the firm was a bank, savings and loan, or insurance company. Public A dummy variable coded 1 if the company was traded on an organized exchange or over the counter; otherwise coded 0. Quality A measure of overall quality of internal controls, as judged by the auditor, on a five-point scale ranging from "virtually none" (1) to "excellent" (5). Finished A measure ranging from 1 to 4, as judged by the auditor, where 1 indicates "all work performed subsequent to year-end" and 4 indicates "most work performed prior to year-end." A sample of 40 companies provided the following data. Delay Industry Public Quality Finished 62 0 0 3 1 45 0 1 3 3 54 0 0 2 2 71 0 1 1 2 91 0 0 1 1 62 0 0 4 4 61 0 0 3 2 69 0 1 5 2 80 0 0 1 1 52 0 0 5 3 47 0 0 3 2 65 0 1 2 3 60 0 0 1 3 81 1 0 1 2 73 1 0 2 2 89 1 0 2 1 71 1 0 5 4 76 1 0 2 2 68 1 0 1 2 68 1 0 5 2 86 1 0 2 2 76 1 1 3 1 67 1 0 2 3 57 1 0 4 2 55 1 1 3 2 54 1 0 5 2 69 1 0 3 3 82 1 0 5 1 94 1 0 1 1 74 1 1 5 2 75 1 1 4 3 69 1 0 2 2 71 1 0 4 4 79 1 0 5 2 80 1 0 1 4 91 1 0 4 1 92 1 0 1 4 46 1 1 4 3 72 1 0 5 2 85 1 0 5 1 (a) Develop the estimated regression equation using all of the independent variables. Use x1 for Industry, x2 for Public, x3 for Quality, and x4 for Finished. (Round your numerical values to two decimal places.) Did the estimated regression equation developed in part (a) provide a good fit? Explain. (Use α = 0.05. For purposes of this exercise, consider an adjusted coefficient of determination value high if it is at least 50%.) Develop a scatter diagram showing Delay as a function of Finished. What does this scatter diagram indicate about the relationship between Delay and Finished? (b) On the basis of your observations about the relationship between Delay and Finished, use best-subsets regression to develop an alternative estimated regression equation to the one developed in (a) to explain as much of the variability in Delay as possible. Use x1 for Industry, x2 for Public, x3 for Quality, and x4 for Finished. (Round your numerical values to two decimal places.)

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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A statistical program is recommended.

A study investigated the relationship between audit delay (Delay), the length of time from a company's fiscal year-end to the date of the auditor's report, and variables that describe the client and the auditor. Some of the independent variables that were included in this study follow.

Industry	A dummy variable coded 1 if the firm was an industrial company or 0 if the firm was a bank, savings and loan, or insurance company.
Public	A dummy variable coded 1 if the company was traded on an organized exchange or over the counter; otherwise coded 0.
Quality	A measure of overall quality of internal controls, as judged by the auditor, on a five-point scale ranging from "virtually none" (1) to "excellent" (5).
Finished	A measure ranging from 1 to 4, as judged by the auditor, where 1 indicates "all work performed subsequent to year-end" and 4 indicates "most work performed prior to year-end."

A sample of 40 companies provided the following data.

Delay	Industry	Public	Quality	Finished
62	0	0	3	1
45	0	1	3	3
54	0	0	2	2
71	0	1	1	2
91	0	0	1	1
62	0	0	4	4
61	0	0	3	2
69	0	1	5	2
80	0	0	1	1
52	0	0	5	3
47	0	0	3	2
65	0	1	2	3
60	0	0	1	3
81	1	0	1	2
73	1	0	2	2
89	1	0	2	1
71	1	0	5	4
76	1	0	2	2
68	1	0	1	2
68	1	0	5	2
86	1	0	2	2
76	1	1	3	1
67	1	0	2	3
57	1	0	4	2
55	1	1	3	2
54	1	0	5	2
69	1	0	3	3
82	1	0	5	1
94	1	0	1	1
74	1	1	5	2
75	1	1	4	3
69	1	0	2	2
71	1	0	4	4
79	1	0	5	2
80	1	0	1	4
91	1	0	4	1
92	1	0	1	4
46	1	1	4	3
72	1	0	5	2
85	1	0	5	1

(a)

Develop the estimated regression equation using all of the independent variables. Use x₁ for Industry, x₂ for Public, x₃ for Quality, and x₄ for Finished. (Round your numerical values to two decimal places.)

Did the estimated regression equation developed in part (a) provide a good fit? Explain. (Use α = 0.05. For purposes of this exercise, consider an adjusted coefficient of determination value high if it is at least 50%.)

Develop a scatter diagram showing Delay as a function of Finished.

What does this scatter diagram indicate about the relationship between Delay and Finished?

(b)

On the basis of your observations about the relationship between Delay and Finished, use best-subsets regression to develop an alternative estimated regression equation to the one developed in (a) to explain as much of the variability in Delay as possible. Use x₁ for Industry, x₂ for Public, x₃ for Quality, and x₄ for Finished. (Round your numerical values to two decimal places.)

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Delay	Industry	Public	Quality	Finished
62	0	0	3	1
45	0	1	3	3
54	0	0	2	2
71	0	1	1	2
91	0	0	1	1
62	0	0	4	4
61	0	0	3	2
69	0	1	5	2
80	0	0	1	1
52	0	0	5	3
47	0	0	3	2
65	0	1	2	3
60	0	0	1	3
81	1	0	1	2
73	1	0	2	2
89	1	0	2	1
71	1	0	5	4
76	1	0	2	2
68	1	0	1	2
68	1	0	5	2
86	1	0	2	2
76	1	1	3	1
67	1	0	2	3
57	1	0	4	2
55	1	1	3	2
54	1	0	5	2
69	1	0	3	3
82	1	0	5	1
94	1	0	1	1
74	1	1	5	2
75	1	1	4	3
69	1	0	2	2
71	1	0	4	4
79	1	0	5	2
80	1	0	1	4
91	1	0	4	1
92	1	0	1	4
46	1	1	4	3
72	1	0	5	2
85	1	0	5	1

Delay	Industry	Public	Quality	Finished
62	0	0	3	1
45	0	1	3	3
54	0	0	2	2
71	0	1	1	2
91	0	0	1	1
62	0	0	4	4
61	0	0	3	2
69	0	1	5	2
80	0	0	1	1
52	0	0	5	3
47	0	0	3	2
65	0	1	2	3
60	0	0	1	3
81	1	0	1	2
73	1	0	2	2
89	1	0	2	1
71	1	0	5	4
76	1	0	2	2
68	1	0	1	2
68	1	0	5	2
86	1	0	2	2
76	1	1	3	1
67	1	0	2	3
57	1	0	4	2
55	1	1	3	2
54	1	0	5	2
69	1	0	3	3
82	1	0	5	1
94	1	0	1	1
74	1	1	5	2
75	1	1	4	3
69	1	0	2	2
71	1	0	4	4
79	1	0	5	2
80	1	0	1	4
91	1	0	4	1
92	1	0	1	4
46	1	1	4	3
72	1	0	5	2
85	1	0	5	1

Delay	Industry	Public	Quality	Finished
62	0	0	3	1
45	0	1	3	3
54	0	0	2	2
71	0	1	1	2
91	0	0	1	1
62	0	0	4	4
61	0	0	3	2
69	0	1	5	2
80	0	0	1	1
52	0	0	5	3
47	0	0	3	2
65	0	1	2	3
60	0	0	1	3
81	1	0	1	2
73	1	0	2	2
89	1	0	2	1
71	1	0	5	4
76	1	0	2	2
68	1	0	1	2
68	1	0	5	2
86	1	0	2	2
76	1	1	3	1
67	1	0	2	3
57	1	0	4	2
55	1	1	3	2
54	1	0	5	2
69	1	0	3	3
82	1	0	5	1
94	1	0	1	1
74	1	1	5	2
75	1	1	4	3
69	1	0	2	2
71	1	0	4	4
79	1	0	5	2
80	1	0	1	4
91	1	0	4	1
92	1	0	1	4
46	1	1	4	3
72	1	0	5	2
85	1	0	5	1