Question

Hi, can you please explain the steps you would do for this problem using a graphing calculator

1. Consider the following Regression Model:

The top law firms in the world in terms of profit per equity partner and the gross revenue ($ millions) for the most recent fiscal year were analyzed.  Given this information, answer the question using the provided output.

Coefficients

                           Coef            SE               t                 p

Intercept              65.8            11.7            5.61            0.00

Gross_revenue      .1682          .0127        13.21           0.00

Analysis of Variance

Source                  df               SS              MS              F        P

Regression              1     702775        702775        174.59        0.00

Error                    98      394470            4025

Total                    99    1097245        

1. Is this SIMPLE or MULTIPLE linear regression?

2. What is the coefficient of the Slope?

3. Interpret the Slope in the language of the problem.

4. What is the coefficient of the Y-Intercept?

5. What is the R²value?

6. What is the Std. Error of Estimation?

7. Is Gross Revenue a useful predictor of Profit per Equity partner?

8. For a firm with a Gross Revenue of $675 million, predict the Profit per Equity Partner:

Answer 1

(a). This is SIMPLE linear regression (b). The value of coefficient of slope is 0.1682. (c). The profit per equity partner is increased by S0.1682 millions when gross revenue is increased by Smillion dollars. (d). The value of coefficient of the Y-intercept is 65.8. SSE SSTOT 394470 1097245 R2-1 -1-0.3595 = 0.6405 The value of coefficient of determination is 0.6405