What is the expected Net Income for the year 2023?. We are also given the following estimated data for the year 20. In the data set, we have financial information for the six variables as follows: Term You can download the data from above link. Let’s have an example data set, the company data. Have forecasted values of independent variables.Estimate the regression from historical data, and.Now, we can write the estimated regression equation from the regression output as follows: In our example, we can see that Hours Study is statistically significant ( p-value=0.01) while grade in Math is not statistically significant at alpha=0.05. P-values: The P-values indicate whether each independent variable is statistically significant. The value of 19.49 means that the expected grade in Accounting will be 19.49 for a student who studies zero hours, have zero in math and statistics.Ĭoefficients: The coefficients for each independent variable tells us the expected change in the dependent variable, assuming the other independent variable remains constant.įor example, for each additional hour of study, the average grade in accounting is expected to increase by 1.83, assuming other variables remain constant. Intercept: 19.490: The coefficient for the intercept. This is the sample size of the dataset used to run the regression.
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