Question: Results of a study reported in Financial Analysts Journal include a simple linear regression analysis of firms pension funding (Y) versus profitability (X). The regression

Results of a study reported in Financial Analysts Journal include a simple linear regression analysis of firms’ pension funding (Y) versus profitability (X). The regression coefficient of determination is reported to be r2 = 0.02. (The sample size used is 515.)
a. Would you use the regression model to predict a firm’s pension funding?
b. Does the model explain much of the variation in firms’ pension funding on the basis of profitability?
c. Do you believe these regression results are worth reporting? Explain.

Step by Step Solution

★★★★★

3.37 Rating (163 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

a The model should not be used for prediction pur... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

463-M-S-L-R (2146).docx

120 KBs Word File

Students Have Also Explored These Related Statistics Questions!

In a simple linear regression analysis attempting to link an independent variable x (average hours per week that a CEO spends at work) to a dependent variable y (size of a CEOs house), the following...

In a simple linear regression analysis attempting to link independent variable x (MBs of RAM memory) to dependent variable y ($ price of a notebook computer), the following ANOVA table was produced....

In a simple linear regression analysis with n = 20 data points, the estimates Î²^0 = 123.57, Î²^1 = -3.90. and (a) Construct a two-sided 95% prediction interval for a future...

Please Provide a 2 to 3 page article review for each, there attached on this question. Your discussion should include a brief summary (including the big ideas or major points of the article) along...

Please help me to answer the following file ............................................................................................... INVESTMENT AND PORTFOLIO MANAGEMENT COURSE ASSESSMENT 1...

Please help me to answer the attached files ................................... INVESTMENT AND PORTFOLIO MANAGEMENT COURSE ASSESSMENT 1 Submission deadline without penalties is 12 October 2017....

Hello. I need to write a three page review for the two articles attached. Each review should include a brief summary that include the major points of the article, as well as a summary of my own...

I need some help with both Case 1 and Case 2 of this assignment. See attached document for full assignment. Here is an excerpt from each. Case 1: Purchase Point Media Corporation (PPMC) Media...

REVIEW THE ARTICLE BELOW then Discuss the following below: Discuss the article. Discuss whether you do or do not agree with the idea that "Wealth is Health" related to this article. Discuss 2-3...

Your discussion should include a brief summary (including the big ideas or major points of the article) along with some synthesis of the ideas and some of your own thoughts. You should draw any...

5M Ltd is a reseller of fan belts. The company is currently busy with its cash planning for the next three months. The following information pertains to the income and expenditure activities of the...

Different Interest Rates for Borrowing and Lending: You first analyzed inter temporal budget constraints with different interest rates for borrowing and saving (or lending) in end of- chapter...

A two - year Treasury security currently earns 5 . 2 5 percent. Over the next two years, the r e and the inflation premium is expected to be 2 . 0 0 percent per year. What is the maturity ri Multiple...

Explain how the cost of capital serves as a screening tool when using (a) the net present value method and (b) the internal rate of return method.

Create an appropriate graph to compare speed of service ratings for male and female customers in the drugstore survey data. Does it appear that males and females rate speed of service differently?

A major airport has been redesigned, with the goal of reducing flight delays. The delays (in minutes) for random samples of flights before and after the upgrade are available in MyStatLab. Create...

Students in Business Studies, Computer Studies, and Engineering Technology Studies were asked to rate their college experience as excellent, good, fair, or poor. Create two graphs to compare the...

What are the main optical parameters to characterize the materials

Glacier Co. has not kept pace with the times and is slowly seeing its sales and market share decline. Based on this trend, the firm recently announced that its next annual dividend will be $5.0 a...

Next Page Page 40 Question 4 (1 point) Bond BAA has 14 years to maturity, $1,000 par, 8% coupon rate, semi-annual coupons. What is the percentage change in the price of this bond if the YTM increases...