A financial analyst engaged in business valuation obtained financial data on 71 drug companies. Let Y correspond to the price-to-book value ratio, X₁ correspond to the return on equity, and X₂ correspond to the growth percentage. Use the accompanying data to complete parts a. through e. below. Click the icon to view the business valuation data. C... a. Develop a regression model to predict price-to-book-value ratio based on return on equity. Round to four decimal places as needed.) b. Develop a regression model to predict price-to-book-value ratio based on growth. Round to four decimal places as needed.) c. Develop a regression model to predict price-to-book-value ratio based on return on equity and growth. ₁=+X₁i+X₂i (Round to four decimal places as needed.)
A financial analyst engaged in business valuation obtained financial data on 71 drug companies. Let Y correspond to the price-to-book value ratio, X₁ correspond to the return on equity, and X₂ correspond to the growth percentage. Use the accompanying data to complete parts a. through e. below. Click the icon to view the business valuation data. C... a. Develop a regression model to predict price-to-book-value ratio based on return on equity. Round to four decimal places as needed.) b. Develop a regression model to predict price-to-book-value ratio based on growth. Round to four decimal places as needed.) c. Develop a regression model to predict price-to-book-value ratio based on return on equity and growth. ₁=+X₁i+X₂i (Round to four decimal places as needed.)
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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Price/Book Value Ratio Return on Equity
13.032
1.405
8.305
2.113
6.654
1.239
3.262
2.449
5.291
2.398
7.719
0.353
2.569
7.593
5.104
2.012
4.797
2.182
4.129
1.918
1.549
1.951
5.046
2.417
2.159
3.011
1.725
5.582
4.698
Growth%
6.385
11.846 135.669
12.459
0.073
25.092
14.188
8.804
22.766
38.082
18.985
25.696
24.519
19.666
11.624
22.849
49.965
69.649 36.696
3.819 41.139
9.218
29.108
17.772
25.114
29.295 23.764
31.405
9.497
14.759
18.541
12.026
39.016
14.228
39.439
14.097
27.022
14.841
13.237
20.669
17.311
14.887
15.849
5.601
16.775
11.172
8.401
16.161
18.404
23.973 16.673
14.725 46.605
28.839
52.021
Transcribed Image Text:A financial analyst engaged in business valuation obtained financial data on 71 drug companies. Let Y correspond to the price-to-book value ratio, X₁ correspond to
the return on equity, and X₂ correspond to the growth percentage. Use the accompanying data to complete parts a. through e. below.
Click the icon to view the business valuation data.
a. Develop a regression model to predict price-to-book-value ratio based on return on equity.
Ŷ₁ = + X₁i
(Round to four decimal places as needed.)
b. Develop a regression model to predict price-to-book-value ratio based on growth.
Î₁ = + x₂i
(Round to four decimal places as needed.)
c. Develop a regression model to predict price-to-book-value ratio based on return on equity and growth.
Ρ = ■ + ■×₁¡ + ■×₂i
(Round to four decimal places as needed.)
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