Question: The list of Best Small Companies in America features a
The list of Best Small Companies in America features a group with strong earnings growth across industries. A business analyst wishes to determine the relationship between earnings per share growth (%) and sales growth (%) and return on equity (%). Data were collected on 100 small companies and stored in Small Businesses. (Data extracted from “America’s Best Small Companies,” forbes. com/ best small companies/ list/.) Develop a multiple regression model that uses sales growth and return on equity to predict earnings per share growth. Be sure to perform a thorough residual analysis.
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