Develop a regression model to predictprice-to-book-value ratio based on return on equity.

1. Use technology to construct a regression model to predictprice-to-book-value ratio based on return on equity. The regression equation is shownbelow, with theY-intercept and the coefficient rounded to four decimal places
2. Develop a regression model to predictprice-to-book-value ratio based on return on equity and growth.
3. Compute and interpret the adjusted r2 for each of the three models.
4. Which of these three models do you think is the best predictor ofprice-to-book-value ratio?

Price/Book Value Ratio Return on Equity Growth%

1.431 12.994 6.422

8.195 11.956 135.589

1.943 12.385 0.149

6.557 25.249 14.202

1.268 8.761 22.741

3.265 38.137 19.095

2.437 25.673 24.664

5.335 19.642 11.656

2.445 22.824 49.815

7.762 69.679 36.814

0.398 3.714 41.101

2.601 9.098 28.917

7.674 29.144 52.055

5.199 17.763 25.147

2.078 29.206 23.776

4.686 31.446 9.554

2.088 14.851 18.441

4.097 11.965 39.118

1.868 14.184 39.384

1.422 14.128 27.113

1.946 14.986 13.145

4.938 20.583 17.343

2.406 14.858 15.896

2.081 5.719 16.798

2.883 11.225 8.258

1.814 16.152 18.368

5.453 24.039 16.765

4.726 14.632 46.522

2.571 6.271 34.145

1.651 19.038 8.525

8.461 38.933 15.171

2.144 15.276 25.195

2.907 19.771 0.322

7.525 18.349 3.253

3.244 20.685 9.522

2.728 34.724 7.122

2.436 15.525 9.538

1.118 10.323 4.757

2.958 23.525 4.098

10.223 91.608 13.265

1.985 1.608 15.907

1.603 9.458 5.693

2.055 19.491 -0.003

7.226 5.064 102.816

1.277 42.734 1.657

5.748 90.844 74.002

6.518 19.307 9.063

2.593 27.222 34.503

3.416 12.998 12.249

6.894 24.615 11.538

13.737 82.007 24.611

4.116 1.477 20.112

7.263 3.547 22.233

6.123 31.625 49.881

0.988 4.998 13.224

9.323 47.875 61.195

1.264 13.387 10.936

1.024 36.033 9.126

3.788 28.611 71.106

3.599 18.184 51.774

2.135 13.911 17.056

10.041 133.034 171.316

4.243 21.963 8.628

8.537 11.376 247.638

1.965 17.338 10.695

4.169 19.397 6.296

2.368 8.441 24.451

2.968 18.499 14.235

4.585 21.668 5.806

5.095 49.393 31.437

2.094 19.362 3.993