Loose Leaf for Statistical Techniques in Business and Economics (Mcgraw-hill/Irwin Series in Operations and Decision Sciences)
16th Edition
ISBN: 9780077639709
Author: Douglas A. Lind, William G Marchal, Samuel A. Wathen
Publisher: McGraw-Hill Education
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Textbook Question
Chapter 14, Problem 27CE
An investment advisor is studying the relationship between a common stock’s price to earnings (P/E) ratio and factors that she thinks would influence it. She has the following data on the earnings per share (EPS) and the dividend percentage (Yield) for a sample of 20 stocks.
- a. Develop a multiple linear regression with P/E as the dependent variable.
- b. Are either of the two independent variables an effective predictor of P/E?
- c. Interpret the regression coefficients.
- d. Do any of these stocks look particularly undervalued?
- e. Plot the residuals and check the normality assumption. Plot the fitted values against the residuals.
- f. Does there appear to be any problems with homoscedasticity?
- g. Develop a correlation matrix. Do any of the
correlations indicate multicollinearity?
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Question 4
An article in Quality Progress (May 2011, pp. 42-48) describes the use of factorial experiments to improve a
silver powder production process. This product is used in conductive pastes to manufacture a wide variety of
products ranging from silicon wafers to elastic membrane switches. Powder density (g/cm²) and surface area
(cm/g) are the two critical characteristics of this product. The experiments involved three factors: reaction
temperature, ammonium percentage, stirring rate. Each of these factors had two levels, and the design was
replicated twice. The design is shown in Table 3.
A222222222222233
Stir Rate
(RPM)
Ammonium
(%)
Table 3: Silver Powder Experiment from Exercise 13.23
Temperature
(°C)
Density
Surface Area
100
8
14.68
0.40
100
8
15.18
0.43
30
100
8
15.12
0.42
30
100
17.48
0.41
150
7.54
0.69
150
8
6.66
0.67
30
150
8
12.46
0.52
30
150
8
12.62
0.36
100
40
10.95
0.58
100
40
17.68
0.43
30
100
40
12.65
0.57
30
100
40
15.96
0.54
150
40
8.03
0.68
150
40
8.84
0.75
30
150…
Chapter 14 Solutions
Loose Leaf for Statistical Techniques in Business and Economics (Mcgraw-hill/Irwin Series in Operations and Decision Sciences)
Ch. 14 - There are many restaurants in northeastern South...Ch. 14 - The director of marketing at Reeves Wholesale...Ch. 14 - Thompson Photo Works purchased several new, highly...Ch. 14 - A consulting group was hired by the Human...Ch. 14 - Cellulon, a manufacturer of home insulation, wants...Ch. 14 - Refer to Self-Review 141 on the subject of...Ch. 14 - Prob. 5ECh. 14 - Prob. 6ECh. 14 - Prob. 3SRCh. 14 - Given the following regression output, answer the...
Ch. 14 - The following regression output was obtained from...Ch. 14 - A study by the American Realtors Association...Ch. 14 - The manager of High Point Sofa and Chair, a large...Ch. 14 - Prob. 10ECh. 14 - Prob. 11ECh. 14 - A real estate developer wishes to study the...Ch. 14 - Prob. 13CECh. 14 - Prob. 14CECh. 14 - Prob. 15CECh. 14 - Prob. 16CECh. 14 - The district manager of Jasons, a large discount...Ch. 14 - Suppose that the sales manager of a large...Ch. 14 - The administrator of a new paralegal program at...Ch. 14 - Prob. 20CECh. 14 - Prob. 21CECh. 14 - A regional planner is studying the demographics of...Ch. 14 - Great Plains Distributors, Inc. sells roofing and...Ch. 14 - Prob. 24CECh. 14 - Prob. 25CECh. 14 - Prob. 26CECh. 14 - An investment advisor is studying the relationship...Ch. 14 - Prob. 28CECh. 14 - Prob. 29CECh. 14 - The director of special events for Sun City...Ch. 14 - Prob. 31CECh. 14 - Prob. 32CECh. 14 - Refer to the Real Estate data, which report...Ch. 14 - Prob. 34DECh. 14 - Refer to the Buena School District bus data....Ch. 14 - Prob. 1PCh. 14 - Quick-print firms in a large downtown business...Ch. 14 - The following ANOVA output is given. a. Compute...Ch. 14 - Prob. 1CCh. 14 - Prob. 2CCh. 14 - Prob. 3CCh. 14 - In a scatter diagram, the dependent variable is...Ch. 14 - What level of measurement is required to compute...Ch. 14 - If there is no correlation between two variables,...Ch. 14 - Which of the following values indicates the...Ch. 14 - Under what conditions will the coefficient of...Ch. 14 - Given the following regression equation, = 7 ...Ch. 14 - Given the following regression equation, = 7 ...Ch. 14 - Given the following regression equation, = 7 ...Ch. 14 - Prob. 1.9PTCh. 14 - In a multiple regression equation, what is the...Ch. 14 - Prob. 1.11PTCh. 14 - Prob. 1.12PTCh. 14 - For a dummy variable, such as gender, how many...Ch. 14 - What is the term given to a table that shows all...Ch. 14 - If there is a linear relationship between the...Ch. 14 - Given the following regression analysis output: a....Ch. 14 - Given the following regression analysis output. a....
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