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*R2.47. Companies assets and sales How are the assets and sales of major corporations related? The data set is the same as that for Exercise 2.44. The variable Banks in the data set is 1 for the banks and 0 for the other companies. As Exercise 2.44 showed, it is best to take the logarithm of most of these variables. Here are a scatterplot and a regres- sion relating the logarithm of assets and the logarithm of sales. The banks are shown in red: | LAss 4.50 3.75- 3.00- 2.25 3.00 3.75 LSI Response variable is: LogAssets R squared = 73.7% s = 0.2741 Variable Intercept LogSales Banks Coefficient 0.422563 0.868488 0.945675 4.50 a) What is an appropriate interpretation of the coefficient of LogSales? b) What is an appropriate interpretation of the coefficient of Banks? c) Is the use of a variable such as Banks appropriate for these data? Explain.

*R2.47. Companies assets and sales How are the assets and sales of major corporations related? The data set is the same as that for Exercise 2.44. The variable Banks in the data set is 1 for the banks and 0 for the other companies. As Exercise 2.44 showed, it is best to take the logarithm of most of these variables. Here are a scatterplot and a regres- sion relating the logarithm of assets and the logarithm of sales. The banks are shown in red: | LAss 4.50 3.75- 3.00- 2.25 3.00 3.75 LSI Response variable is: LogAssets R squared = 73.7% s = 0.2741 Variable Intercept LogSales Banks Coefficient 0.422563 0.868488 0.945675 4.50 a) What is an appropriate interpretation of the coefficient of LogSales? b) What is an appropriate interpretation of the coefficient of Banks? c) Is the use of a variable such as Banks appropriate for these data? Explain.

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
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*R2.47. Companies assets and sales How are the assets and sales of major corporations related? The data set is the same as that for Exercise 2.44. The variable Banks in the data set is 1 for the banks and 0 for the other companies. As Exercise 2.44 showed, it is best to take the logarithm of most of these variables. Here are a scatterplot and a regres- sion relating the logarithm of assets and the logarithm of sales. The banks are shown in red: LAss 4.50- 3.75 3.00 2.25 3.00 3.75 LSI Response variable is: LogAssets R squared = 73.7 % s = 0.2741 Variable Intercept LogSales Banks Coefficient 0.422563 0.868488 0.945675 4.50 a) What is an appropriate interpretation of the coefficient of LogSales? b) What is an appropriate interpretation of the coefficient of Banks? c) Is the use of a variable such as Banks appropriate for these data? Explain.
Transcribed Image Text:*R2.47. Companies assets and sales How are the assets and sales of major corporations related? The data set is the same as that for Exercise 2.44. The variable Banks in the data set is 1 for the banks and 0 for the other companies. As Exercise 2.44 showed, it is best to take the logarithm of most of these variables. Here are a scatterplot and a regres- sion relating the logarithm of assets and the logarithm of sales. The banks are shown in red: LAss 4.50- 3.75 3.00 2.25 3.00 3.75 LSI Response variable is: LogAssets R squared = 73.7 % s = 0.2741 Variable Intercept LogSales Banks Coefficient 0.422563 0.868488 0.945675 4.50 a) What is an appropriate interpretation of the coefficient of LogSales? b) What is an appropriate interpretation of the coefficient of Banks? c) Is the use of a variable such as Banks appropriate for these data? Explain.
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