The standard error of the estimate is closest to: A. 0.2631. B. 1.7849. C. 38.5579. Espey Jones
Question:
The standard error of the estimate is closest to:
A. 0.2631.
B. 1.7849.
C. 38.5579.
Espey Jones is examining the relation between the net profit margin (NPM) of companies, in percent, and their fixed asset turnover (FATO). He collected a sample of 35 companies for the most recent fiscal year and fit several different functional forms, settling on the following model:
ln(NPMi)= b0 + b1FATOi.
The results of this estimation are provided in Exhibit 1.
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