In: Finance
Coefficient | ||
intercept | 950.1896 | |
Rank | -0.6678 | |
StdNum | 0.001978 |
remu = B0+B1rank+B2Stdnum+u
A.)wht is most likely sign for B2, explain why.
B.)Estimate equation with or without stdnum.report the resul in equation.explain the relation between dependent and independent variables,are they statistically significant?
It is a Multiple Regression equation
Remu is a dependent variable and other two variables such as Rank and Stdnum are considered as independent variables.
The Equation is
A. Beta 2 is negative. It indicates that Rank has a negative or inverse relationship with Remu. It seems when Remu is increasing the rank will be decreased.
B Estimate equation with stdnum
It can be written using the values as
B Estimate equation without stdnum
It can be written using the values as
The relationship between Dependent and independent variables
Rank has a negative relationship with the dependent variable remu. It indicates that When remu is increased, the rank will be decreased. The relationship is inverse. But the std Num keeps a positive relationship with Remu. It shows that when stdnum is increased the remu will also be increased. Both the independent variables influences the dependent variable significantly. The percentage of significance can be explained by the t statistics.