# This data file contains a variety of accounting and financial values that describe 324 companies operating in

## Question:

(a) What difference in R&D spending (as a percentage) is associated with a 1% increase in the assets of a firm? Give your answer as a range, rounded to meaningful precision.

(b) Revise your model to use base 10 logs of assets and R&D expenses. Does using a different base for both log transformations affect your answer to part (a)?

(c) Find a 95% prediction interval for the R&D expenses of a firm with $1 billion in assets. Be sure to express your range on a dollar scale. Do you expect this interval to have 95% coverage?

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**Related Book For**

## Statistics For Business Decision Making And Analysis

**ISBN:** 9780321890269

2nd Edition

**Authors:** Robert Stine, Dean Foster