Jensen, Solberg, and Zorn investigated the relationship of insider ownership, debt, and dividend policies in companies. One of theirfindings was that firms with high insider ownership choose lower levels of both debt and dividends. Shown here is a sample of data ofthese 3 variables for 11 different industries. Use the data to develop the equation of the regression model to predict insider ownershipby debt ratio and dividend payout.InsiderDebt DividendIndustryOwnership RatioPayoutMining8.214.210.4Food and Beverage18.420.814.3Furniture11.818.612.1Publishing28.018.511.8Petroleum refining7.428.210.6Glass and cement15.424.712.6Motor vehicle15.715.612.618.421.77.2Department store13.423.011.3Restaurant18.146.74.1Amusement10.035.89.0Hospital Motor vehicle15.715.612.6Department store18.421.77.2Restaurant13.423.011.3Amusement18.146.74.1Hospital10.035.89.0(Round all answers to 4 decimal places, eg. 1.7589)The regression model is:Insider Ownership =Debt Ratio-Dividend PayoutAppendix A Statistical TableseTextbook and MediaAttempts: 0 of 1 usedSubmit AnswerSave for LaterMacBook Air

The independent variables are Debt Ratio and Dividend Payout. The dependent variable is Insider…

Answered: Jensen, Solberg, and Zorn investigated…

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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To properly examine the effect of a categorical independent variable in a multiple linear regression model we use an interaction term. True O False
According to an article, one may be able to predict an individual's level of support for ecology based on demographic and ideological characteristics. The multiple regression model proposed by the authors was the following. y = 3.60-.01x₁+.01.₂-.07x3+.12x4+.02xs-.04x6-01-.04.xg-.02.xg+c The variables are defined as follows. y = ecology score (higher values indicate a greater concern for ecology) X₁ = age times 10 x₂ = income (in thousands of dollars) x3 = gender (1 = male, 0 = female) X4 = race (1 = white, 0 = nonwhite) X5 = education (in years) x6 = ideology (4 = conservative, 3 = right of center, 2 = middle of the road, 1 = left of center, and 0 = liberal) X7 = social class (4 = upper, 3 = upper middle, 2 = middle, 1 = lower middle, 0 = lower) xg = postmaterialist (1 if postmaterialist, 0 otherwise) x9 = materialist (1 if materialist, 0 otherwise) (a) Suppose you knew a person with the following characteristics: a 30 year old, white female with a college degree (20 years of…
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Training Dept. of Nimrod Inc wants to develop a regression-based compensation model (compensation in $ per year, Comp) for its mid-level managers to encourage performance, loyalty, and continuing education based on three variables. ▪ Business unit-profitability (Profit per year in $). ▪ Working experiences in Nimrod Inc (Years). ▪ Whether or not a manager has a graduate degree (Grads). If a manager has a graduate degree equals 1, 0 otherwise. Table Attached Question: Use the (full) model to determine the compensation for a manager who has been working for twelve years in a company, no graduate degree, and Nimrod Inc profit of $8.000.000 last year.
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Café Michigan's manager, Gary Stark, suspects that demand for mocha latte coffees depends on the price being charged. Based on historical observations, Gary has gathered the following data, which show the numbers of these coffees sold over six different price values: Price $2.70 $3.40 $1.90 $4.10 $3.00 $4.00 Using simple linear regression, and given that the price per cup is $1.80, the forecasted demand for mocha latte coffees will be cups (enter your response rounded to one decimal place). Number Sold 765 510 980 245 320 480
Training Dept. of Nimrod Inc wants to develop a regression-based compensation model (compensation in $ per year, Comp) for its mid-level managers to encourage performance, loyalty, and continuing education based on three variables. ▪ Business unit-profitability (Profit per year in $). ▪ Working experiences in Nimrod Inc (Years). ▪ Whether or not a manager has a graduate degree (Grads). If a manager has a graduate degree equals 1, 0 otherwise. Table Attached Question: Which explanatory variables and interaction terms are significant and not significant at alpha = 5%? Explain your answer briefly.
Jensen Tire & Auto is in the process of deciding whether to purchase a maintenance contract for its new computer wheel alignment and balancing machine. Managers feel that maintenance expense should be related to usage, and they collected the following information on weekly usage (hours) and annual maintenance expense (in hundreds of dollars). Weekly Usage Annual (hours) Maintenance Expense 15 22 12 27 22 35 30 42 34 52 19 36 26 38 33 44 42 57 40 45 a. Develop the estimated regression equation that relates annual maintenance expense (in hundreds of dollars) to weekly usage hours (to 3 decimals). Expense = Weekly Usage b. Test the significance of the relationship in part (a) at a 0.05 level of significance. Compute the value of the F test statistic (to 2 decimals). The p value is Select your answer- - Select your answer What is your less than 0.01 between 0.01 and 0.025 - Select your a between 0.025 and 0.05 c. Jensen expe between 0.05 and 0.10 greater than 0.10 sed 30 hours per week.…
According to an article, one may be able to predict an individual's level of support for ecology based on demographic and ideological characteristics. The multiple regression model proposed by the authors was the following. y = 3.60-.01.x₁ +.01.x2-.07x3+.12x4+.02xs-.04x6-.01x7.04x8-.02xg+e The variables are defined as follows. y = ecology score (higher values indicate a greater concern for ecology) x₁ = age times 10 x₂ = income (in thousands of dollars) x3 = gender (1 = male, 0 = female) X4 = race (1 = white, 0 = nonwhite) X5 = education (in years) x6 = ideology (4 = conservative, 3 = right of center, 2 = middle of the road, 1 = left of center, and 0 = liberal) X7 = social class (4 = upper, 3 = upper middle, 2 = middle, 1 = lower middle, 0 = lower) x8 = postmaterialist (1 if postmaterialist, 0 otherwise) x9 = materialist (1 if materialist, O otherwise) (a) Suppose you knew a person with the following characteristics: a 30 year old, white female with a college degree (20 years of…

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