(0.92) (0.03) (0.25) (0.04) Residual sum of squares = 200 Total sum of squares = 620 Number of Observations = 90 %3D Standard errors of the coefficients are given in parentheses. The variables are: LEV = Leverage (total debt to total assets). TANG = Tangibility (net fixed assets to total assets). PROFIT = Profitability (net income to total assets). GROWTH = Firm growth (Percent change in sales). e = residual

Algebra & Trigonometry with Analytic Geometry
13th Edition
ISBN:9781133382119
Author:Swokowski
Publisher:Swokowski
Chapter7: Analytic Trigonometry
Section7.6: The Inverse Trigonometric Functions
Problem 94E
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Interpret the effects of each independent variable in estimating leverage.

LEV = 1.32
0.10TANG
0.28PROFIT + 0.19GROWTH + e
(0.92) (0.03)
(0.25)
(0.04)
Residual sum of squares = 200
Total sum of squares = 620
Number of Observations = 90
Standard errors of the coefficients are given in parentheses.
The variables are:
LEV = Leverage (total debt to total assets).
TANG = Tangibility (net fixed assets to total assets).
PROFIT = Profitability (net income to total assets).
%3D
GROWTH = Firm growth (Percent change in sales).
e =
residual
Transcribed Image Text:LEV = 1.32 0.10TANG 0.28PROFIT + 0.19GROWTH + e (0.92) (0.03) (0.25) (0.04) Residual sum of squares = 200 Total sum of squares = 620 Number of Observations = 90 Standard errors of the coefficients are given in parentheses. The variables are: LEV = Leverage (total debt to total assets). TANG = Tangibility (net fixed assets to total assets). PROFIT = Profitability (net income to total assets). %3D GROWTH = Firm growth (Percent change in sales). e = residual
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