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 + B1STDCFOt+ B2SALESt + B3CYCLEt 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

MATLAB: An Introduction with Applications
6th Edition
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Author:Amos Gilat
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Chapter1: Starting With Matlab
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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: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.
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.
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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