Jensen, Solberg, and Zorn investigated the relationship of insider ownership, debt, and dividend policies in companies. One of their findings was that firms with high insider ownership choose lower levels of both debt and dividends. Shown here is a sample of data of these 3 variables for 11 different industries. Use the data to develop the equation of the regression model to predict insider ownership by debt ratio and dividend payout. Insider Debt Dividend Industry Ownership Ratio Payout Mining 8.2 14.2 10.4 Food and Beverage 18.4 20.8 14.3 Furniture 11.8 18.6 12.1 Publishing 28.0 18.5 11.8 Petroleum refining 7.4 28.2 10.6 Glass and cement 15.4 24.7 12.6 Motor vehicle 15.7 15.6 12.6 Department store 18.4 21.7 7.2 Restaurant 13.4 23.0 11.3 Amusement 18.1 46.7 4.1 Hospital 10.0 35.8 9.0 (Round all answers to 4 decimal places, e.g. 1.7589.) The regression model is: Insider Ownership = Debt Ratio - Dividend Payout

MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
icon
Related questions
Question
100%

q13

Jensen, Solberg, and Zorn investigated the relationship of insider ownership, debt, and dividend policies in companies.
One of their findings was that firms with high insider ownership choose lower levels of both debt and dividends. Shown
here is a sample of data of these 3 variables for 11 different industries. Use the data to develop the equation of the
regression model to predict insider ownership by debt ratio and dividend payout.
Insider
Debt Dividend
Industry
Ownership Ratio
Payout
Mining
8.2
14.2
10.4
Food and Beverage
18.4
20.8
14.3
Furniture
11.8
18.6
12.1
Publishing
28.0
18.5
11.8
Petroleum refining
7.4
28.2
10.6
Glass and cement
15.4
24.7
12.6
Motor vehicle
15.7
15.6
12.6
Department store
18.4
21.7
7.2
Restaurant
13.4
23.0
11.3
Amusement
18.1
46.7
4.1
Hospital
10.0
35.8
9.0
(Round all answers to 4 decimal places, e.g. 1.7589.)
The regression model is:
Insider Ownership =
Debt Ratio -
Dividend Payout
Transcribed Image Text:Jensen, Solberg, and Zorn investigated the relationship of insider ownership, debt, and dividend policies in companies. One of their findings was that firms with high insider ownership choose lower levels of both debt and dividends. Shown here is a sample of data of these 3 variables for 11 different industries. Use the data to develop the equation of the regression model to predict insider ownership by debt ratio and dividend payout. Insider Debt Dividend Industry Ownership Ratio Payout Mining 8.2 14.2 10.4 Food and Beverage 18.4 20.8 14.3 Furniture 11.8 18.6 12.1 Publishing 28.0 18.5 11.8 Petroleum refining 7.4 28.2 10.6 Glass and cement 15.4 24.7 12.6 Motor vehicle 15.7 15.6 12.6 Department store 18.4 21.7 7.2 Restaurant 13.4 23.0 11.3 Amusement 18.1 46.7 4.1 Hospital 10.0 35.8 9.0 (Round all answers to 4 decimal places, e.g. 1.7589.) The regression model is: Insider Ownership = Debt Ratio - Dividend Payout
Expert Solution
steps

Step by step

Solved in 3 steps with 4 images

Blurred answer
Recommended textbooks for you
MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
Probability and Statistics for Engineering and th…
Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning
Statistics for The Behavioral Sciences (MindTap C…
Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
Elementary Statistics: Picturing the World (7th E…
Elementary Statistics: Picturing the World (7th E…
Statistics
ISBN:
9780134683416
Author:
Ron Larson, Betsy Farber
Publisher:
PEARSON
The Basic Practice of Statistics
The Basic Practice of Statistics
Statistics
ISBN:
9781319042578
Author:
David S. Moore, William I. Notz, Michael A. Fligner
Publisher:
W. H. Freeman
Introduction to the Practice of Statistics
Introduction to the Practice of Statistics
Statistics
ISBN:
9781319013387
Author:
David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:
W. H. Freeman