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