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MATLAB: An Introduction with Applications
6th Edition
ISBN: 9781119256830
Author: Amos Gilat
Publisher: John Wiley & Sons Inc
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
Transcribed Image Text:Required:
(a). Interpret the partial slope coefficient for Asset. Is it significantly negative considering a t-
test with 5% significance level? Explain your answer.
(b). Interpret the partial slope coefficient for operation cycle. Is this coefficient significantly
different from zero considering the 95% confidence interval? Explain your answer.
(c). Calculate and interpret the statistic adjusted R-square.
(d). To test the overall significance of the model at the 10% significance level, what are the
null hypothesis and the alternative hypothesis? Use the F statistics to test the overall
significance and explain your results.

Transcribed Image Text:2. A researcher aims to investigate the determinants of accounting quality of firms. With a
sample that contains 108 firm-year observations from 1984 to 2003, the research run a mult-
variate regression and got the following results:
EQit = Bo + B1ASSET{t + B1STDCF0;t+ B2SALESit + B3CYCLEL
Where EQ is standard deviation of the Earnings; ASSET is total assets; STDCFO is standard
deviation of cash flow from operation; SALES is sales revenue and CYCLE is operating cycle.
Variables
Coefficient
Estimated Standard Deviation
Intercept
0.0157
0.0019
ASSET
-0.0033
-0.0021
STDCFO
0.1388
0.0043
SALES
0.0004
0.0004
CYCLE
0.0321
0.0093
The total sum of squares is 487,135 and the residual sum of squares is 132,576.
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