Question

In: Statistics and Probability

The following data gives the credibility score of certain firms based on current ratio, Debt/ Asset...

The following data gives the credibility score of certain firms based on current ratio, Debt/ Asset ratio, and
whether the firms go bankrupt or not

Firm No. Current Ratio Debt/Asset Ratio % Credibility Score Did Firm go Bankrupt earlier
1 3.4 60 0.78 N
2 3 76 0.791 Y
3 2.6 56 0.620 Y
4 2.5 68 0.757 Y
5 2.4 60 0.509 N
6 2.2 28 0.129 N
7 2.0 42 0.220 N
8 1.7 20 0.948 N
9 1.2 46 0.871 Y
10 1 28 0.391 Y

Fit a suitable regression equation predicting the credibility score.

Solve using Excel Data Analysis : Regression

Solutions

Expert Solution

sol:

code N as 0 anD Y as 1

from data analysis toolpak

SUMMARY OUTPUT
Regression Statistics
Multiple R 0.392337
R Square 0.153928
Adjusted R Square -0.26911
Standard Error 0.315668
Observations 10
ANOVA
df SS MS F Significance F
Regression 3 0.108774 0.036258 0.363865 0.781908
Residual 6 0.597879 0.099646
Total 9 0.706652
Coefficients Standard Error t Stat P-value Lower 95% Upper 95%
Intercept 0.335089 0.366704 0.913785 0.396064 -0.5622 1.232382
Current Ratio 0.036945 0.269687 0.136993 0.895518 -0.62296 0.696845
Debt/Asset Ratio % 0.002278 0.011391 0.199947 0.848127 -0.0256 0.03015
Did Firm go Bankrupt earlier 0.149991 0.292426 0.512921 0.626337 -0.56555 0.865531

regression eq is

credibilty score=   0.335088831+0.036945181*Current Ratio+0.002277606*Debt/Asset Ratio %+0.149991296*Did Firm go Bankrupt earlier

orchestra answered 1 year ago
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