Answer :

Answer:

Suppose the following table shows the economic rate of return (Y), ratio b/n cash & turnover (X1) and total debt turnover (X2) between September and June, 2015 of Korabin company.

11

Year

Y

X1

X2

September

15

14

3.5

October

20

13

4.3

November

30

10

5

December

42

7

6

January

50

7

7

February

54

5

9

March

65

4

8

April

72

3

10

May

85

3.5

12

June

90

2

14

Compute the least-square Fitted Multiple Linear Regression Equation of EROR on CTOR and TDTO.

Compute the multiple coefficient of determination (R2). Interpret the result.

Test the significance of individual partial regression coefficients at 1%, level of significance.

Test the “overall significance” of the fitted MLRM at 1% level of significance.

Predict Korabin’s company economic return if CTOR and TDTO of the company are 20 USD and 8 USD respectively