Answer to Question #325757 in Statistics and Probability for Galaxy

Question

The following table shows the regression results of 33 listed textile firms of DSE observed over 6 periods from 2012-2017 and form a panel data of 198 observations. Where STDR stands for short term debt ratio, LTDR stands for long term debt ratio, ER stands for Equity ratio and Firms age and ROE stands for return on equity (profitability ratio).

Regression Results of ROE:

ROE Coef Std. Err. t p>|t| STDR -.163 .063 -2.60 001 LTDR -.206 .088 -2.33 .02 ER -.431 .059 -7.38 0.00 Firm's Age -.003 .0007 -3,79 0.00 Constant .458 .054 8.44 0.00 F(5, 198) =16.9 Ptob> F =0.00 R-squared =0.594 Adj R- squared =0.25 Numbct of obs =198

i) Identify the dependent and independent variables with proper justifications.

ii) Write out the multiple regression equation using the above table.

iii) Interpret the regression coefficients.