Firm$\_$ID Turnover

$(000)$ Employees Subsidiaries Audit$\_$Fee

$(000)$

$1389,062\mathrm{.}0092690107\mathrm{.}00$

$2340,612\mathrm{.}0011,6831594\mathrm{.}00$

$3321,900\mathrm{.}00983111100\mathrm{.}00$

$4178,253\mathrm{.}003328247\mathrm{.}00$

$5155,876\mathrm{.}0041473223\mathrm{.}00$

$6153,812\mathrm{.}0052813294\mathrm{.}00$

$7153,560\mathrm{.}195040994\mathrm{.}80$

$8127,055\mathrm{.}00164524215\mathrm{.}00$

$9123,958\mathrm{.}0061400167\mathrm{.}00$

$10122,004\mathrm{.}001720467\mathrm{.}00$

Use the file audit fees to answer the following questions:

$$ a$.$ Run a multiple linear regression of Audit Fee on Turnover, Employees and Subsidiaries. Based on the results, write the estimated regression equation for the expected value of audit fee?

$$ b$.$ what is the expected audit fee paid by firms with turnover of $2$ million that have $50$ employees and two subsidiaries?

$$ c$.$ What measures can be used to assess a regression$$s ability to make good predictions?

$$ d$.$ Test the null hypothesis, does it have a firm turnover, does it have no linear effect on audit fees?

$$ e$.$ Test the null hypothesis, does it have a that the total number of subsidiaries has no linear effect on audit fees?

$$ F$.$ what conclusions can you draw about the factors that affect Audit Fee?

$$ Interpret the slope coefficient of the statistically significant factor.