Math Problem Statement

data-9_24_2024-11_01 AM.xlsx

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Question content area top Part 1 A financial analyst engaged in business valuation obtained financial data on 71 drug companies. Let Y correspond to the​ price-to-book value​ ratio, Upper X 1 correspond to the return on​ equity, and Upper X 2 correspond to the growth percentage. Use the accompanying data to complete parts a. through e. below. LOADING... Click the icon to view the business valuation data. Question content area bottom Part 1 a. Develop a regression model to predict​ price-to-book-value ratio based on return on equity. ModifyingAbove Upper Y with caret Subscript iequals

2.3328plus

0.0700Upper X Subscript 1 i ​(Round to four decimal places as​ needed.) Part 2 b. Develop a regression model to predict​ price-to-book-value ratio based on growth. ModifyingAbove Upper Y with caret Subscript iequals

3.1233plus

0.0310Upper X Subscript 2 i ​(Round to four decimal places as​ needed.) Part 3 c. Develop a regression model to predict​ price-to-book-value ratio based on return on equity and growth. ModifyingAbove Upper Y with caret Subscript iequals

enter your response hereplus

enter your response hereUpper X Subscript 1 iplus

enter your response hereUpper X Subscript 2 i ​(Round to four decimal places as​ needed.)

Solution

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Math Problem Analysis

Mathematical Concepts

Regression Analysis
Linear Regression

Formulas

Y = β0 + β1 * X1
Y = β0 + β1 * X1 + β2 * X2

Theorems

Least Squares Method

Suitable Grade Level

Undergraduate level